SocGen Is Latest Bank to Shutter Its Commodities Business
- Bank Shutting OTC commodities business, trading subsidiary
- Comes after BNP shut its U.S commodities derivatives desk
Photographer: Balint Porneczi/Bloomberg
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Add Societe Generale SA to the list of banks and financial institutions to take a big step back from commodities amid a slump in trading profits.
The French bank said on Tuesday that it is planning to close its over-the-counter commodities business and its proprietary trading subsidiary as part of a global move to cut about 1,600 jobs after a slump in trading revenue. The bank will also reorganize and refocus activities within fixed income and prime services to make them more profitable.