Are Deutsche Bank and Barclays Taking a Big Risk By Staying in the Precious Metals Markets?
By GCRU Gold News on Wednesday, May 7 2014, 08:44 - Permalink
Barclays (NYSE: BCS ) and Deutsche Bank (NYSE: DB ) have announced they're scaling back roles in the commodities markets. But investors shouldn't be too quick to breathe a sigh of relief. These firms plan to continue dealing in precious metals markets, and that decision threatens to keep them in regulators' crosshairs, if not in and out of court.
Deutsche Bank to quit price fixing Gold and silver prices are set, or fixed, during daily teleconferences held by a select group of banks. Deutsche Bank is currently one of the price-setters for both metals. After failing to sell the post, Deutsche Bank has given its two-week notice and will no longer take part in the price-setting after May 13.
Deutsche Bank has also announced it's closing trading desks for a range of commodities, including energy, agriculture, base metals and dry bulk. Deutsche Bank appears to be making great strides to exit the commodities business, which should settle choppy waters. But, then again, the bank plans to continue trading precious metals.