LONDON, Feb 19 (Reuters) - Credit Agricole has resigned from the London Metal Exchange (LME) - the world’s largest metals market place - with immediate effect, the exchange said on Tuesday.
The move follows the bank’s announcement in December 2011 that it would stop trading commodities and would also slash its financing of the multi-billion-dollar market, in sweeping commodity cuts among European banks strained by the euro zone crisis.
The LME said Credit Agricole, France’s No.3 bank, had resigned as a Category 2 member of the exchange. Category 2 members are entitled to trade on the electronic LMESelect and the telephone market, but not in the open outcry ring.
Earlier this month, the bank announced 3.8 billion euros ($5.2 billion) in charges as banks continued to struggle to move on from ill-timed deals before the 2008 financial crisis.
Those charges came less than three months after Credit Agricole unveiled 3.6 billion euros of writedowns with its third-quarter results which will plunge it to the largest annual loss since it went public in 2001.
Volatile commodity prices, dimmer growth prospects and tougher regulation are also forcing some firms to question the outlook for the decade-long boom in trading raw materials.
Reporting by Susan Thomas; editing by Veronica Brown and Keiron Henderson