Morgan Stanley commodities marketing head departs
By Jeanine Prezioso
NEW YORK (Reuters) - Morgan Stanley's (MS.N: Quote) global head of commodities marketing, Boris Shrayer, has left the bank, a source familiar with the matter told Reuters on Friday.
Shrayer could not immediately be reached for comment at the bank's New York office and a spokesman for Morgan Stanley had no comment. The news was first reported on industry website SparkSpread.com.
Grant Brady, head of Americas corporate marketing, will take over some of Shrayer's responsibilities. Brady will report to Peter Sherk, head of North American gas and power trading in New York, and Michael Brennan, global head of oil trading in London, the source said.
Last month, Morgan Stanley said it would exit some agricultural products and European power and gas businesses, leading to the departure of around 30 traders.
In January, a managing director on Morgan Stanley's North American power and natural gas desk, left the bank. In September, three of the bank's European gasoline traders in Europe were set to join Swiss commodity trader Mercuria.
Wall Street banks have been shedding traders in recent years. Financial regulations in the Dodd-Frank Act and the Volcker Rule were designed to rein in excessive risk taking after the 2008 financial crisis, limiting revenue and bonuses in the sector.
Other regulations have sought to increase the amount of capital a bank must hold. Commodities trading is a capital-intensive business, requiring traders to put up millions of dollars at time in margin to secure trades.
On Wednesday, U.S. regulators proposed a plan that would force the country's largest banks to hold twice as much equity capital as is required by global regulations. Continued...