American banking giant Citigroup has purchased the commodities trading books of Credit Suisse Group.
Citigroup has purchased books of base and precious metals, iron ore, coal, crude oil and oil products, US and European natural gas, as well as freight.
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According to Credit Suisse, the latest move, which excludes its US power trading book, will help mitigate risk-weighted assets by $2bn.
Credit Suisse said in July that it would exit commodities trading, due to regulatory constraints and higher capital requirements which adversely affected profits.
It has also retained its commodity investor products business, including a number of indices, and will continue to trade precious metals electronically as part of its foreign exchange desk.
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