Standard Chartered is closing its office in Geneva, the global center of the commodity-trading industry, in Chief Executive Officer Bill Winters’s latest move to slash the lender’s exposure to the oil, gas and agricultural industries.
Bloomberg News reports that while the bank says commodities trading and agribusiness, or CTA, will continue to be a “core activity,” it will be transferred to London as “a consequence of our decision to reduce our overall exposure to commodity-related clients,” the bank said in a statement in response to questions.
Closing the Geneva office, which opened in 2007, “marks the end of Standard Chartered’s client coverage from Switzerland,” it said.
The move leaves Standard Chartered without a physical presence in a city home to the world’s largest oil traders, including Vitol Group and Mercuria Energy Group. Traders accounted for $20bn of Standard Chartered’s $40bn commodity exposure last year, down from $33bn during 2014, according to its annual report.
To access the complete Bloomberg News article hit the link below: