WSJ
DON’T BANK ON IT
Wall Street looks to be throwing in the towel on the commodities business.
Morgan Stanley is reported to be following the example of JP Morgan Chase & Co. by putting its U.S. oil terminal and transport business up for sale. Regulatory pressure is weighing down so hard that the banks’ arguments are being drowned out.
This isn’t restricted to the U.S., by the way—one of Europe’s biggest financial players, Deutsche Bank, is getting out of trading many commodities. The environment has turned against banks.
Commodities traders, however, will be pleased to see some of their direct competition get regulated out of the market.
