Steve Slater News

Standard Chartered Plc said its $175 million provision to cover its exposure to suspected commodities fraud in China was the result of a conservative view of possible costs but didn't believe there were widespread problems in the sector. Chinese authorities launched an investigation in May into whether metals trading firm Decheng Mining and related companies used fake warehouse receipts at Qingdao Port to obtain multiple loans secured against a single cargo of metal. "We believe that in the provisioning we have taken we have taken a very conservative approach. Our exposure in the warehouses around Qingdao is around $250 million in total," StanChart Chief Executive Peter Sands told reporters on a call on Wednesday after the London-based bank announced first-half results.

Germany's largest bank, Deutsche Bank AG, has declared it will not finance a controversial coal port expansion in Australia near the Great Barrier Reef, responding to calls from environmental groups and tourism operators. HSBC, Europe's biggest bank, also signalled on Friday it would be unlikely to finance the project. Deutsche Bank's stand marks a win for those opposed to $26 billion worth of coal projects that plan to use the Abbot Point port, already facing delays due to weak coal prices. But one company involved said the bank's position made no difference. "This doesn't impact our proposed projects in any way," Indian firm GVK Hancock spokesman Josh Euler said.

Barclays Plc said it is quitting the majority of its commodities businesses to join a retreat from the area by a number of banks as tougher regulations make it less profitable. Barclays will exit from most of its metals, energy and agricultural trading but remain trading precious metals, some oil and gas instruments, and index products, the bank said on Tuesday. The smaller business will be focused on electronic execution, it said. Barclays is expected to next month unveil a wider reduction in the size of its investment bank…