Legal News

Barclays Made $500 Million on Food Crisis
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Over the past two years, Barclays has made half a billion pounds by placing bets on food issues during the global food crisis. Barclays is a bank from the United Kingdom that holds the largest involvement in trading of food commodity.

Rob Nash, a private sector adviser for Oxfam said, “The food market is becoming a playground for investors rather than a market place for farmers. The trend of big investors betting on food prices is transforming food into a financial asset while exacerbating the risk of price spikes that hit the poor hardest.”

  
What
Where


It has been estimated by the World Development Movement that Barclays pulled in no more than £529m from the company’s “food speculative activities” in 2010 and 2011. In 2010, Barclays made £340m and in 2011 the bank made £189m.

The bank makes the majority of its money from speculating on food by creating commodity funds that take money and invest it. The money is taken from pension funds, wealthy individuals and insurance companies in return for commissions and fees. Barclays has said that it does not invest its own money. According to the US Commodity Futures Trading Commission, since 2000, Barclays has been able to make $200 billion when investing cash in agricultural commodities.

One of the researchers for World Development Movement, Christine Haigh, said, “No doubt the UK’s biggest player in the commodities markets is hoping it will do better this year by cashing in on rising food prices. Its behaviour risks fuelling a speculative bubble and contributing to hunger and poverty for millions of the world’s poorest people.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Barclays has defended what it is doing, saying that trading in futures contracts has helped farmers hedge against risks or rising or falling prices. “Our clients include investment companies, food producers and consumers who, among other things, seek our help to manage risks.” A spokesman for Barclays said, “We recognise there is a perception held by some stakeholders that participation in agricultural futures markets by some participants can unduly influence the prices of commodities. As a result, we continue to carefully monitor market trends and any research produced on this subject.”





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Construction Attorney

USA-FL-Deerfield Beach

Highly regarded, AV-rated law firm seeks Construction Litigation Associate with a minimum of 5 years...

Apply now

Family Law Firm seeks Associate Attorney

USA-WA-Vancouver

Are you ready to excel at the highest levels of family law? Do you prefer a dynamic, energetic pract...

Apply now

Legal Secretary

USA-NY-Buffalo

Legal Secretary for small but busy law firm in downtown Buffalo, primarily handling real estate matt...

Apply now

Commercial Real Estate Attorney

USA-AL-Huntsville

Benefits Offered 401K, Dental, Medical, Vision Employment Type Full-Time Leo Law Firm, L...

Apply now

SEARCH IN ARCHIVE

To Top