{"id":5847,"date":"2014-10-22T01:16:11","date_gmt":"2014-10-22T01:16:11","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=5847"},"modified":"2014-10-22T01:34:27","modified_gmt":"2014-10-22T01:34:27","slug":"citibank-acquires-deutsche-commodities-trading-book","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=5847","title":{"rendered":"Citibank acquires Deutsche commodities trading book"},"content":{"rendered":"

Cecilia Jamasmie<\/a> | October 21, 2014<\/p>\n

\"citi\"<\/a><\/p>\n

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\"Citibank<\/a><\/p>\n

Citigroup Inc. (NYSE:C)\u00a0has expanded its presence in in the commodities business by buying out Deutsche Bank AG \u2019s metals- and energy-trading books, Reuters<\/em> reports<\/a>.<\/p>\n

While Citi isn\u2019t expanding into trading physical commodities, its acquisition of Deutsche\u2019s metals-, power- and oil-trading books will allow it to expand hedging services it provides to its clients in the commodities sector.<\/p>\n

Deutsche is also rumoured to have sold<\/a>\u00a0long-term trading contracts and stockpiles of low-grade uranium to Australian investment bank Macquarie Group, valued at the end of last year at around $200 million.<\/p>\n

Thin margins, tough regulations and worries about reputation have made trading commodities a source of worries for bank bosses.<\/p><\/blockquote>\n

The German bank became the latest financial institution to unload its commodity division, asthin margins, tough regulations and worries about reputation have made trading commodities a source of worries for bank bosses.<\/span><\/p>\n

Barclays, one of the biggest in the business,followed JPMorgan Chase (NYSE:JPM),<\/a>heading for the exit in April<\/a>. Before them, South Africa\u2019s Standard Bank sold its commodities unit in London to Industrial and Commercial Bank of China in January. And Morgan Stanley sold its physical oil-trading division to Rosneft, a Russian oil giant, in December last year, just as Deutsche Bank said it would stop trading most raw materials.<\/p>\n

Image <\/em>by\u00a0<\/em>mattbuck<\/a> <\/em>| WikiMedia Commons.<\/em><\/p>\n<\/div>\n

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