Europe’s Banks Fall Out of Love With Commodity Traders
- Banks are scaling back their commodity trade finance business
- Trading houses face higher costs in hunt for new funding
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When Marc Rich needed $100 million to buy Iranian oil and kickstart what would become the world’s largest commodity trader, he went to French bank Paribas. When a group of traders needed cash to take over Vitol and turn it into the largest oil trader, they turned to Dutch bank ABN.