November 26, 2008 / 6:28 PM / 10 years ago

Credit Suisse to close New York carbon desk-sources

LONDON, Nov 26 (Reuters) - Credit Suisse CSGN.VX will close its New York emissions trading desk and cut staff in London, sources familiar with matter told Reuters on Wednesday.

“They’re closing New York and cutting the London desk,” said one source who declined to be named.

The Swiss investment bank would keep several staff at its London office for “day-to-day trading”, but Paul Ezekiel, the bank’s head of carbon trading in New York, would leave and the bank would not pursue further deals or emissions reduction projects, the sources said.

Credit Suisse declined to comment. “They’re stopping new origination of primary deals. There are some people leaving,” said a carbon trader who also asked not to be named.

Ezekiel said last month the bank was preparing a structured carbon emissions deal worth about $200 million.

He said the deal involved 11.5 million tonnes of U.N.-approved carbon dioxide offsets, called Certified Emission Reductions (CERs), generated from 25 emissions-cutting projects in China, India and Brazil. [ID:nLM279164]

The bank purchased a 10 percent stake in project developers EcoSecurities ECO.L for 44 million euros ($57.04 million) in June 2007.

EcoSecurities’ shares have since dropped by around 90 percent. (Reporting by Michael Szabo and Gerard Wynn; Editing by Sue Thomas)

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