Scotiabank to scrap half its metals business, sources tell Reuters

Section:

By Peter Hobson
Reuters
Wednesday, June 6, 2018

LONDON -- Canada's Bank of Nova Scotia (Scotiabank) is limiting lending by its ScotiaMocatta metals unit as it embarks on a radical restructuring likely to halve the size of the business, sources familiar with the matter said.

Mocatta is the largest financier of the global precious metals supply chain, accounting for some 15-20 percent of lending to clients ranging from refiners and jewelers to carmakers and petrochemicals producers, industry sources say.

... Dispatch continues below ...



ADVERTISEMENT

USAGold: Coins and bullion since 1973


USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.

Please call 1-800-869-5115x100 and ask for the trading desk, or visit:

http://www.USAGold.com

USAGold: Great prices, quick delivery -- all the time.



Those sources place the value of its leases, credit lines and consignment lending of precious metal at $8 billion.

While rivals are likely to take on most of Scotia's business, its withdrawal will see the pool of cash available to the industry dwindle further after banks including Barclays, Deutsche Bank and Commerzbank scaled back or exited the market in recent years.

It could also leave smaller clients short of financing options and facing higher borrowing costs.

Ten industry sources told Reuters that ScotiaMocatta was curtailing lending to the physical metals supply chain and would refocus on major corporate clients which have broader relationships with Scotiabank. ...

... For the remainder of the report:

https://www.reuters.com/article/us-bank-nova-metals-restructuring/scotia...

* * *

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Thursday-Sunday, November 1-4, 2018
https://neworleansconference.com/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16