Credit Suisse commodity star quits to set up hedge fund after Obama reforms

A TOP Credit Suisse commodity trader is leaving the bank, along with a team of proprietary traders, to set up a hedge fund backed by $150m (£95m) from private investment firm Blackstone Group,

The move by George “Beau” Taylor, a rainmaker renowned for making big bets on energy markets at a series of Wall Street firms, is the latest response to the Obama administration’s decision to crack down on so-called “speculative” trading.

Eight people will be leaving the bank, including Taylor, the global head of commodities arbitrage trading, and Trevor Woods, head of energy arbitrage trading.

Credit Suisse and Blackstone declined to comment on the moves.

Investment banks like Credit Suisse with proprietary trading desks are taking a hard look at their trading businesses and whether they comply with the so-called Volcker rule, part of financial reforms designed to rein in banks from making risky bets with their own capital.