Commodities staff slashed at JPMorgan
JPMORGAN has made around 50 commodities traders around the world redundant as a result of its takeover of Royal Bank of Scotland’s Sempra Commodities, a source said yesterday.
The American bank closed the $1.6bn (£1bn) purchase of RBS Sempra earlier this
month. It inherited the Scottish institution’s share of a joint venture (JV) with US-based
Sempra Energy, comprising 500 employees working across oil, coal, metals and
European power and gas businesses.
JPMorgan is understood to have cut between 40 and 50 people since the merger finalised.
Some of those made redundant were veteran JPMorgan staffers, while others had recently
moved across from RBS Sempra.
The integration comes at the end of a long and winding deal process. RBS put its share of Sempra on the block last November after the European Union ordered it to sell off assets as a condition of having received taxpayer help during the financial crisis. JPMorgan was originally interested in acquiring the entire JV, including Sempra Energy’s share, but cooled after US President Barack Obama announced plans to crack down on proprietary trading by banks.
JPMorgan eventually fought off Deutsche Bank and Macquarie to buy RBS Sempra in February. Head of commodities Blythe Masters brushed off concerns over the implications of Obama’s so-called “Volcker rule” three weeks ago, saying the law would “not substantially” affect RBS Sempra purchase.