Welcome to the New World of Physical Commodities Trading & Wealth Creation

As JPMorgan Chase & Co has now exited the physical commodities trading business, one wonders what the future of the business at large – along with the one of the two major banks that have dominated Wall Street’s involvement in the natural resources supply chain for 30 years – will be, particularly when it comes to Goldman Sachs and Morgan Stanley; the ultimate “Wall Street Refiners”.

Goldman Sachs and Morgan Stanley may hold one advantage over JPMorgan, as their long history of operating in physical commodities as less regulated banks may provide them with “grandfathered” ownership of assets like warehouses, pipelines and storage tanks that other commercial banks aren’t allowed…I am afraid though this advantage is clearly narrowing by the day.

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