Nordea stop speculating on food prices

Monday, 04 June 2012
Speculation on food prices has been criticized by many including the United Nations and it has been determined to be responsible in contributing to price rises in world prices of food.

The drivers of such speculative tendencies have been financial institutions such as banks which use various instruments to determine what and how the price of food could be in the future – long and short run. Among such banks are also the leading Swedish banks such as Nordea which tend to gent into all the little nocks and comers to make money.

But this speculation on food prices seem to be something that could be able its stance and Nordea announces that it will stop investing in such securities which leads its  bank customers to involve in speculating on food prices on world markets according to media reports in Sweden.

Swedbank on its part had tried to maintain some ethical positioning that area and has never offered such investments.
"Our decision is based on a series of international analysis, which demonstrate a correlation between speculation in financial markets and widely fluctuating and record high food prices, "said Klaus Fridorf, head of responsible investment at Nordea, according to media reports.

However, the other big hawkish banks, SEB and Handelsbanken are to continuing offering commodity bonds based on consumption, and relate to speculation on food prices.
By Scancomark.se Team