JPMorgan's decision to exit the physical commodities space could be the first step in a wave of banks leaving that part of the business in anticipation of tighter regulatory action, according to some experts. "I don't think it was any one thing, but a culmination of things, that drove [JPMorgan's] decision," said Craig Pirrong, a professor at the University of Houston. Morgan Stanley and Goldman Sachs have had significant presence in both financial and physical commodities for about 20 years, but that could be about to change, according to experts.

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