Thursday, February 14, 2013

Look who is halting agriculture trading with hedges


Barclays is halting agricultural trading with hedge funds in a move to burnish its reputation amid a major overhaul, but will still market index-linked investment products in the sector.  The British bank is among several financial institutions to have come under fire for speculating on grain and other agriculture products, which critics say has pushed up food prices and fuelled unrest in some poor countries.

CEO Antony Jenkins told a news conference on Tuesday the bank was exiting speculative trading in softs and agriculture due to "reputational reasons", but was sticking with the overall commodities sector.  A source close to the situation later clarified that the bank was only stopping softs and agricultural trading with hedge funds….

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