Banks pull food-commodity ETFs

European banks are discontinuing investment vehicles like ETFs that allow investors to speculate on food prices.

Financial Times reports Volksbanken of Austria and German banks Deutsche Bank, Commerzbank, DekaBank and Landesbank Baden-Württemberg have announced they will discontinue or suspend investment funds linked to food, such as commodities ETFs and ETNs.

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The banks insist the measure is motivated by reputational concerns, rather than the belief that speculation puts upward pressure on food commodity prices.

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