Goldman commodities crown slips as traders exit
Yahoo! News
LONDON (Reuters) - At least 20 commodities traders, several senior, have left Goldman Sachs in the past months, dealing a blow to Wall Street's long-time king of commodities as talent moves to better paying trading houses and hedge funds.
The departures, according to around a dozen insiders and trading sources, mirror the exodus of traders from rival banks over the past two years.
The outflow is driven by shrinking profits and tighter regulation of banking, which gives funds and trading houses greater scope to trade and to reward success.
Goldman said the departures will not have an impact on its standing in commodities.
"We are not downsizing our commodities business. It remains a core part of our franchise," a spokesman for Goldman said. "The positions we need to refill, we will refill".
A source at Goldman said the departures were a combination of resignations and regular annual headcount reductions, and were not specific to commodities but happening across all the bank's businesses.
But insiders say some of the departures were triggered by unusually low bonuses at Goldman, widely recognized over the past 20 years as the most prestigious and well paying of the big five banks in commodities alongside JP Morgan , Morgan Stanley , Deutsche Bank and Barclays .
Earlier this month, Reuters reported that Goldman had ceded leadership in commodities trading revenues to JPMorgan, according to regulatory disclosures by the banks.
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