Bank of America said it would close its European power and gas sales and trading desk, mainly due to lower demand. The bank did not disclose revenue for the desk. The bank said the decision follows a recent review of its broader commodities activities and reflects the combined impact of lower client demand for European power and gas hedging and recent regulatory changes. The bank plans to sell its current European power and gas inventory. However, it would remain active in the U.S. power and gas markets, where it said it has deeper client penetration and the ongoing shale revolution presents significant additional growth opportunities. The final number of staff that will be made redundant by the move hasn’t yet been determined, but will likely be in the low double digits. Bank of America’s decision mirrors similar moves at other banks, as they face regulatory constraints on commodities trading and flat or declining prices in many markets.
