Energy Trading - Rumours Of 'Significant' Firm Losses

Dow Jones Newswires reports that Parker Drew, JPMorgan's head natural gas trader, resigned last month.

JPMorgan has confirmed that the trader has left the firm, but refused to elaborate on the underlying reasons for his departure. The firm did take on some additional risk in the last quarter, and revenues in the fixed income and commodity division came in at a record $6.4bn - some of which was down to the deal to buy a part of (and then quickly re-sell half of) Amaranth's natural gas trading portfolio.

Dow Jones quotes an unnamed Houston-based energy trader, who said, however, that 'JPMorgan may have lost significant sums this year trading emissions credits - mainly European allowances of carbon dioxide'.

The news agency also reports that Citigroup has hired Paul Mead, currently director of European power and gas trading over at Barclays, to come aboard and push its European power and gas businesses. The firm has confirmed that it intends to hire an additional 20-30 traders, as well as staff in back office and support, as its beefs up in this area.

Sources - Dow Jones Newsires,

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