Mercuria hires ex-Goldman executive to run trading
LONDON May 12 (Reuters) - Fast growing Swiss trading house Mercuria has hired a former top executive from Goldman Sachs to run its global commodities trading, as it expands further into the territory abandoned by many top Wall Street lenders under tighter regulatory scrutiny.
A high level Mercuria source told Reuters Magid Shenouda, who was co-head of commodities for Goldman until the end of last year and helped build one of the strongest trading units among banks, has joined Mercuria.
Mercuria is closing a $3.5 billion deal to buy commodities trading from another Wall Street giant, JP Morgan.
"With the acquisition of JPM's business we will substantially grow in size and are looking at a turnover of $130-$150 billion," the source said.
The co-founders of Mercuria, Marco Dunand and Daniel Jaeggi, will focus on managing the company with emphasis on integration and client relations while Shenouda will run trading.
Shenouda was one of several recent senior departures from Wall Street's most famed commodity trader, which has said it is keen to keep its unit despite pressure from the U.S. Federal Reserve.
The Fed is conducting a review while U.S. lawmakers raise concerns that banks might abuse their roles in physical commodities markets, or that the businesses pose risks to their financial stability. (Reporting by Dmitry Zhdannikov, editing by William Hardy)