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UPDATE 1-Deutsche Bank global oil and gas trading head leaves-source
January 29, 2013 / 8:51 PM / 5 years ago

UPDATE 1-Deutsche Bank global oil and gas trading head leaves-source

* Latest senior departure from Deutsche’s commodity arm

* Banks facing tougher regulations, lower revenues

By David Sheppard

Jan 29 (Reuters) - Deutsche Bank’s global head of oil and agriculture trading, John Redpath, has left the firm, a source familiar with the matter said on Tuesday.

Redpath, who joined the German bank’s New York office in 2007 from Citigroup, is the latest high profile departure from Deutsche’s commodity arm, after global commodities head David Silbert left the firm in December.

Reuters also reported earlier this month that Raymond Key, Deutsche Bank’s global head of metals trading, is due to leave the bank.

A source familiar with developments at the bank said it remains committed to its commodities trading business despite the recent departure of several senior members of staff.

Deutsche Bank has also made steep cuts to its U.S. and European power and gas trading desks as it undergoes a major restructuring.

The bank announced in December it was cutting 1,500 positions in corporate banking to save billions of euros amid a profit slump due to the euro zone crisis.

Industry publication SparkSpread first reported that Redpath had left the firm earlier on Tuesday, saying he resigned.

A spokeswoman at Deutsche Bank declined to comment.

Commodities trading has been hard hit at many investment banks by tighter regulations, including those restricting trading for the bank’s own book.

Lower volatility in many commodity markets has also cut the number of profitable trading opportunities and reduced hedging activity by some of the banks’ biggest clients.

Morgan Stanley, one of Deutsche Bank’s biggest rivals in commodity trading, said its commodity results in the fourth quarter of 2012 were the worst since 1995.

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.

Goldman, long considered one of the most powerful oil and metals trader on Wall Street, reported “significantly lower” revenues in its commodity business in the fourth quarter, without providing further details.

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