(Bloomberg) — BNP Paribas SA is exiting its commodities finance small business in the US, pursuing previously retreats in other parts of the globe.
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“The selection taken to exit this business enterprise was reliable with our strategy in EMEA,” the bank explained in a assertion in reaction to concerns. “The influence is limited, and BNP Paribas continues to be deeply committed to the US and Americas” as properly as its strength and renewables consumers, it explained.
BNP offered the e book of financial loans to Mitsubishi UFJ Money Team Inc., according to individuals with information of the predicament. The Paris-based mostly lender told shoppers and workers about the decision on Wednesday, stated the people, who questioned not to be discovered simply because the details was private. The sale entails commodities finance only and excludes its commodity derivatives platform, the men and women stated, declining to share economical phrases of the offer or the variety of afflicted staff members.
Reps for BNP and MUFG declined to comment.
BNP — at the time 1 of the greatest loan providers to commodity traders — has been shrinking its exposure to financing commodities for some time. In 2014, it was fined virtually $9 billion to resolve accusations it violated US sanctions involving Iran, Cuba and Sudan. In 2020, it suspended new commodity trade finance offers in EMEA right after racking up hefty losses. Very last calendar year, BNP halted funding oil pumped from the Ecuadorian Amazon immediately after climate activists criticized the bank and some others for funding fossil fuels that lead to weather improve whilst promoting corporate responsibility.
The sale to MUFG is envisioned to shut in the up coming a few to six months, and some staff will be transferred to MUFG though other individuals will remain at BNP, one of the folks stated.
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