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Hey Guys,

I just read on Bloomberg "Deutsche Bank Said to Fire 10 Traders as Banks Retrench". It appears that many banks are little by little getting rid of their commoditis business.

What is your take on it?
http://www.bloomberg.com/news/2013-02-08/deutsche-...

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Comments (6)

  • FIASCO's picture

    Nah, don't agree with this at all. They may slim down a bit in Europe but the US desks are still pretty active. If there's money in it (and there is) the banks will be there.

  • EURCHF parity's picture

    The flow side needs banks to make a market in their hedging products. So there will always be some people making a market in hedging products. It happens to be a business that favours a large institution with the overhead and sophistication to offer such products cheaply.

    Maybe demand for those products outside the merchants has gotten slack enough that - just as with mortgage products a few years ago - the extra people hired to cope with the boom and every pension fund manager "wanting to be in commodities" are no longer worth the large $$.

  • In reply to Tupac
    marcellus_wallace's picture

    Tupac:
    yall kidding? db commodities is getting whacked

    Understatement. DB got murder'd last year and most of the traders had guranteed bonuses which expired and boom they were shown the door.

  • sleepingmonkey's picture

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