Morgan Stanley cut 10 percent of its workforce in the commodity division this year and is in talks to sell its global oil business to OAO Rosneft, Russia’s largest petroleum producer. Goldman Sachs has put its uranium-trading unit up for sale and received inquiries from potential buyers for its metals warehouse operator, people briefed on the matter said last month.
JPMorgan generated the most first-half revenue from commodities among the top 10 financial firms, followed by Goldman Sachs and Morgan Stanley, Coalition estimates.
Deutsche Bank generated 1.29 billion euros ($1.75 billion) from trading fixed income, currencies and commodities in the third quarter, accounting for 43 percent of the revenue from investment banking and trading, company filings show. It doesn’t publish stand-alone figures for the commodities arm.
The bank generated $881 million in commodities revenue in 2012, according to a JPMorgan report on April 11. Kitchen and Jefferson replaced former commodities head David Silbert, who left the bank. Deutsche Bank dismissed power and gas traders in the U.S. last year as part of the 1,900 job cuts.
The Standard & Poor’s GSCI gauge of 24 raw materials fell 2.5 percent this year amid rising supply of commodities from corn to copper. The MSCI All-Country World Index of equities climbed 16 percent, and the Bloomberg Treasury Bond Index declined 2.7 percent.