BNP Paribas is shuttering its U.S. commodities derivatives desk, according to people familiar with the matter, the second trading unit to be wound down within days as France’s largest bank seeks to protect profitability.
Bloomberg News reports that the closing of the business, which had 16 people and traded energy, metals and some agricultural products, dovetails with an earlier decision by BNP to stop financing shale and oil sands projects. But the timing - days after Bloomberg reported the bank is said to be closing its proprietary trading arm Opera Trading Capital - suggests broader adjustments at the investment bank, analysts said.
Bloomberg also reports that the bank, lost $80 million in derivative trades linked to the U.S. stock benchmark late last year as turmoil gripped global markets, according to people familiar with the matter.
The majority of the losses came over several days in the run-up to the holiday, the people said.
Have something to tell us about this article?