Scotiabank takes $168 million hit as it shuts historic gold unit
Submitted by cpowell on 01:26AM ET Wednesday, May 27, 2020. Section: Daily Dispatches By Jack Farchy Bloomberg News Tuesday, May 26, 2020
Bank of Nova Scotia has set aside C$232 million ($168 million) to cover the cost of winding down its historic precious metals unit as well as a potential settlement of U.S. investigations into the unit's trading activities.
The charges this year, which the bank disclosed in its quarterly earnings report today, mark an ignominious end to what was once one of the world's top gold-trading businesses, with a history dating back to the 17th century.
Scotiabank announced last month it was closing its metals business. The bank had already significantly reduced its activity in bullion markets, where it was once a leading player alongside banks such as JPMorgan Chase & Co. and HSBC Holdings. Last year it dropped the "Mocatta" name, a fixture of the gold market ever since Moses Mocatta opened an account to trade precious metals in 1671.
The bank has been caught up in regulatory scrutiny of banks' precious-metals trading and one of its former traders last year pleaded guilty to trying to manipulate prices through spoofing. ...
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