Banks cut commodity staff to four-year low

[SINGAPORE] The biggest banks are employing the fewest commodity traders, salespeople and analysts in at least four years as tighter regulations and the second drop in prices since 2001 spur cutbacks.

Total headcount in commodity units at the 10 largest banks, from Goldman Sachs Group Inc to Barclays plc, stood at 2,290 at the end of September, about 4 per cent less than at the end of last year, according to data starting in 2009 from Coalition, the London-based analytics company. Pay for those workers may drop 13 per cent on average this year, a fourth straight decline, said Options Group, a recruitment company.

Investors pulled a record US$34.1 billion from commodity funds since December and prices tracked by Standard & Poor's are headed for their first annual drop since 2008. JPMorgan Chase & Co, the biggest US lender by assets, is seeking to sell its physical commodity business. The Federal Reserve is reviewing banks' control of raw-material assets and regulators are demanding more reserves to cover losses.