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By Eric Onstad
LONDON Jan 30 Deutsche Bank has appointed two internal executives to head its global commodities business as it restructures and cuts jobs, a source close to the bank said on Wednesday.
Louise Kitchen, who was global head of commodity structuring, and Richard Jefferson, head of commodity sales, are moving into the new roles immediately, said the source, who declined to be identified.
They will take over from David Silbert, who was head of commodities since 2007 when he joined Deutsche from Merrill Lynch.
Deutsche said last month its fourth-quarter profits would be affected by the restructuring aimed at achieving annual cost savings of 4.5 billion euros, but that there was no cause for alarm among investors.
The bank said last summer its Corporate Banking and Securities division, which includes commodities, would see about 1,500 job cuts. The source said the cuts in commodities had largely been completed, but did not give any numbers.
Deutsche is still committed to its commodities business and the restructuring has not resulted in an exit from any commodity sectors, the source added.
As co-heads, Kitchen will oversee client coverage globally while Jefferson will be responsible for commodity trading.
They will be based in London and report to Jeff Mayer, head of Corporate Banking and Securities, North America, in New York, Deutsche staff were told in an internal announcement, the source said.
Kitchen has been with Deutsche since August 2005, when she joined from UBS. She also worked as an executive at Enron and as a gas trader at PowerGen, according to her profile on LinkedIn.
The restructuring at the bank has also resulted in the departure of the global head of metals trading, Raymond Key, and the global head of oil and agricultural trading, John Redpath, sources close to the situation said this month.
Deutsche, together with Barclays and J.P. Morgan , broke into the commodities arena in the last decade with acquisitions or aggressive growth to challenge established veterans Goldman Sachs and Morgan Stanley.
But all five had to shrink operations after the 2008 financial crisis in the face of tightening regulation and a crackdown on proprietary trading, when deals are done by banks for themselves rather than on behalf of clients. (Reporting by Eric Onstad; Editing by Tom Pfeiffer)