It shut down its commodities hedge fund after it lost 26.7% in August, 2008 due to losses in the energy, mining and natural resources sectors.
For example, Calpers, the California Public Employees Retirement Systemm, the largest United States pension fund, said last week that it might increase its commodities investments sixteenfold to $7.2 billion through 2010, to benefit from an across-the-board surge in commodities like gold, silver, oil and wheat.
It buys many of its commodities with ever cheaper greenbacks and sells most of its products in ever appreciating euros.
It made $686 million last year from its commodities trading principal operations.
NEW YORK TIMES Morgan Stanley Said to Weigh Options for Commodities Unit | Morgan Stanley has had talks with private equity firms including the Blackstone Group as it assesses possible options for its commodities division, Bloomberg News reports, citing unidentified people familiar with the discussions.
Kreinberg, who headed the performance chemicals unit, wanted Dow to dump its commodities business, arguing that it was dragging down his more profitable division.
Malaysia, trying to keep its commodities at home, has made it a crime to export flour and other products without a license.
The cheap prices of its commodities are the heavy artillery with which it batters down all Chinese walls, with which it forces the barbarians' intensely obstinate hatred of foreigners to capitulate".
If JPMorgan succeeds in buying the unit, it would be another leap forward in its efforts to expand its commodities trading desk, which swelled after the bank absorbed Bear Stearns in March 2008.
RBS Sempra Commodities, its commodities trading arm.
Income from its commodities, debt and currency operation fell to £4.9 billion from £8.2 billion.
