Deutsche Bank AG pulled the plug on its global commodities trading business on Thursday, cutting 200 jobs as it becomes the first major bank to exit the once lucrative sector due to toughening regulations and diminished profits.Germany's largest bank, which was one of the top-five financial players in commodities, said in a statement it will cease trading in energy, agriculture, base metals, coal and iron ore, retaining only precious metals and a limited number of financial derivatives traders.The cuts are expected to largely fall on its main commodity desks in London and New York.The move comes as the financial sector's role in commodity trading has been squeezed by lower margins, higher capital requirements and growing political and regulatory scrutiny of the role of banks in the natural resources supply chain.
Deutsche Bank AG is a global investment bank. The Company offers a variety of investment, financial and related products and services to private individuals, corporate entities and institutional clients around the world. Shares of DB fell by 1.29% or $-0.6/share to $46.08. In the past year, the shares have traded as low as $38.18 and as high as $53.12. On average, 864158 shares of DB exchange hands on a given day and today's volume is recorded at 674865.
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