Jeff Resnick, partner as of 2008 and the global head of commodities trading, has suddenly retired from Goldman Sachs, Reuters reports.
Taking over for him are Greg Agran and Magid Shenouda.
We’ll have more in a minute.
Update (1:00 PM):
Resnick was originally named partner in 2004. He spent 18 years at the firm in total. Goldman’s commodities division is a big player:
“Goldman likely has a 15 per cent to 20 per cent market share in commodities, which generated industry revenue of $6 billion to $7 billion last year, according to estimates from Glenn Schorr, an analyst at Nomura Holdings Inc. in New York.” (Bloomberg Businessweek)
Agran, based in New York, was Goldman’s “partner in charge of gas and power” according to this Trade2Win forum post (confirmed by Bloomberg). Agran was hired by Goldman in 1991, became a managing director in 1999, and was made partner in 2006, according to the memo as reported by Bloomberg.
Shenouda was made partner in 2008, in London. According to the same Bloomberg reporting, he is “head of European crude oil and products trading and European gas and power trading.” He was hired as a vice president in 1999 and helped grow Goldman’s physical commodities trading. Shenouda became a managing director in 2005.
Goldman and Morgan Stanley had always been the top of the commodities-trading heap, an updated Reuters report points out, but have been increasingly threatened in that sector by JPMorgan since the 2008 meltdown. Goldman’s commodity VaR (Value at Risk) is down to only $25 million, compared to $39 million in the Q2 2010, according to Reuters.
Still, commodities are more important for Goldman (and Morgan Stanley) than most banks. From Reuters:
“Commodities usually account for a relatively small share of trading income at Wall Street banks, compared with equities, currencies and bonds.
But at Goldman and Morgan Stanley, they can make up as much as a tenth of their multi-billion dollar profits.”
Along with the other big banks, Goldman faces big layoffs this year. Check out the latest numbers on how many bankers will be fired on Wall Street this fall.