NEW YORK, Dec 17 (Reuters) - Goldman Sachs Group Inc has appointed two senior executives to run its global metals and commodities businesses, sources said on Tuesday, the latest in a series of high-level changes at Wall Street’s No. 1 bank for commodities.
London-based Charles McGarraugh, who is currently head of European mortgage product trading, will be global head of metals trading, running one of the world’s biggest metal derivatives desks, two sources familiar with the matter said.
Don Casturo, who is based in New York and is global head of commodities investor products, has been named chief operating officer of global commodities, a newly created position, one of the sources said. He will retain his investor products job.
A Goldman Sachs spokesperson declined to comment on the appointments.
The reorganization comes after the bank lost two senior commodity executives -- co-head of global commodities trading Magid Shenouda and global head of commodities sales Peter O‘Hagan -- in October and follows a tumultuous year for the bank’s metals business.
McGarraugh is taking over the role held by long-time metals chief Stephen Branton-Speak, who left the bank at the end of 2012, the first of three key metals departures in the past year.
The bank has struggled to expand in physical metals trading, which is very capital intensive and considered high risk, after first entering the business in 2010.
The two executives are also taking over the reins at a time of unprecedented regulatory pressure amid allegations that the bank’s metals warehousing business inflated physical aluminum prices. The Federal Reserve is also considering ways to limit Wall Street’s deep involvement in raw materials markets.
Goldman has considered selling the warehousing unit.
At the same time, revenues at Goldman and other banks have been shrinking as lower market volatility and tighter regulation hurt profits. (Editing by Bob Burgdorfer)