LONDON May 12 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
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
(Reporting by Dmitry Zhdannikov, editing by William Hardy)