Anonymous ID: eeec66 March 7, 2019, 9:30 a.m. No.5558995   🗄️.is 🔗kun

Goldman Sachs : further shrinks commodities trading

 

LONDON (Reuters) - Goldman Sachs Group Inc , once one of the most active banks in commodities trading, has cut 10 roles to further downsize its global commodities trading division amid rising costs and shrinking profits.

 

Three sources familiar with the matter said on Thursday the cuts were announced this week following an annual review of headcount across all divisions and regions. Goldman Sachs declined to comment.

 

The commodities trading business was once one of Goldman's largest, most active units and a significant driver of profits earned by the Wall Street bank until tighter regulation curbed the risks it could take on proprietary bets.

 

Cuts were accelerated as competition with trading houses and oil majors increased and as profits shrank.

 

Three out of the 10 people being let go held senior roles or managing director positions within the company's commodities unit, a source with knowledge of the cuts said.

 

The cuts are global and will involve merging the commodities unit's metals trading desks, the source said.

 

Banks do not disclose their commodities revenues but financial analytics firm Coalition estimates the top 12 banks generated commodities trading revenue of less than $4 billion in 2018, down from nearly $16 billion in 2008.

 

Fixed income, currencies and commodities revenues across all major investment banks dropped to their lowest levels seen since the financial crisis in the final quarter of 2018, the Coalition data showed, with oil trading suffering significant declines across the year.

https://www.marketscreener.com/GOLDMAN-SACHS-GROUP-12831/news/Goldman-Sachs-further-shrinks-commodities-trading-28127532/?countview=0