Reply #12: Rothschild, the bank built on gold, quits market

[54anickel]

http://news.independent.co.uk/business/news/story.jsp?story=511516

After 261 years, N.M. Rothschild & Sons, the most prestigious bank in the City of London still owned by its founding family, shocked the financial world yesterday when it pulled out of trading in gold and other commodities.

The chairman, David de Rothschild, said: "Our income from commodities trading in London, including gold, has fallen as a percentage of our total income in each of the past five years. Following a strategic review of our activities we have concluded that this is no longer a core area of activity and have, therefore, decided to withdraw from the market.

"We remain committed to growing further our activities in specialist commercial banking, private banking and trust services, and objective relationship-based investment banking advice."

As part of the decision, Rothschild will no longer take part in the twice-daily London Gold Fixing, which it currently chairs and which has been held in its offices since 1919.

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edit to add -
Rothschild Australia retrenches seven traders
http://biz.yahoo.com/rm/040415/financial_rothschild_commodities_australia_1.html

SYDNEY, April 15 (Reuters) - NM Rothschild & Sons Australia has retrenched seven people following a decision to stop volatile commodities trading on its own books in favour of pursuing more work for clients.

Rothschild Australia Chief Executive Richard Martin said the company wants to focus on resources clients after its London headquarters said on Wednesday it was quitting commodities trading.

"We've let seven traders go," Martin said by telephone, adding eight support staff who process or document trades will also lose their jobs within six months.

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"What we're trying to do is create a more client-focused business. The people who do the hedging for clients, we're keeping," he said of 12 remaining commodities traders and sales people who mainly focus on precious metals.

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