Citi to Rework Commodities Unit, Hires Moorooven From Engie
(Bloomberg) -- Citigroup Inc. said it’s seeking to improve the organizational structure of its commodities-trading business.
The New York-based bank also hired Yoven Moorooven as global head of new business ventures for the commodities-trading division, according to a memo to staff. Moorooven will be based in London and report to Jose Cogolludo, global head of the commodities business.
Some of the changes to the commodities business are part of the bank’s transformation efforts, Cogolludo said in the memo. Citigroup has previously said that those efforts will modernize the firm’s systems as well as satisfy two consent orders from the Office of the Comptroller of the Currency and the Federal Reserve over deficiencies in its internal controls and risk-management framework. The bank has said the work will ultimately take years.
“As part of Citi’s transformation efforts, we have begun enhancing our organizational structures and establishing initiatives to ensure that our commodities business can continue to thrive,” Cogolludo said in the memo.
Moorooven was most recently head of Asia-Pacific cross-commodities trading and global liquefied natural gas trading at the French energy giant Engie SA. He will initially focus on expanding Citigroup’s physical capabilities to better serve the bank’s global franchise, Cogolludo said.
Earlier this year, Citigroup said John Young will lead the firm’s commodities-trading division in the Americas as part of its efforts to strengthen risk controls in the unit. Commodities-trading desks across Wall Street have been affected by wild swings in energy markets as historic storms and natural disasters sweep across the globe.
Citigroup had $2.7 billion in revenue from the trading of spread products and other fixed-income instruments in the first half of 2021. While that was little changed from a year earlier, it helped counter a 34% decline in revenue from trading rates and currencies products.
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