NEW YORK (Reuters) - A top Credit Suisse (CSGN.VX) commodity trader is leaving the bank, along with a team of proprietary traders, to set up a hedge fund backed by $150 million from private investment firm Blackstone Group (BX.N), two people familiar with the matter said.
The move by George 'Beau' Taylor, a rainmaker renowned for making big bets on energy markets at a series of Wall Street firms, is the latest response to U.S. lawmakers in July passing new rules cracking down on speculative trading.
Eight people will be leaving the bank, including Taylor, the global head of commodities arbitrage trading, and Trevor Woods, head of energy arbitrage trading.
Credit Suisse and Blackstone declined to comment on the moves, which were first reported by the Wall Street Journal on its website on Thursday.
Investment banks like Credit Suisse with proprietary trading desks are looking a hard look at their trading businesses and whether they comply with the so-called Volcker rule, part of broader financial reforms designed to rein in banks from making risky bets with their own capital.
Credit Suisse's proprietary-trader ranks have thinned from as many as 250 to just 100, a person familiar with the firm told Reuters.
The Volcker rule is widely expected to shake loose a number of trading teams from banks, creating opportunities for investment firms like Blackstone to help launch and take stakes in new hedge funds.
Last month, JPMorgan Chase & Co (JPM.N) told its proprietary commodities traders that their desk will be shut down, as it looks to comply with new U.S. banking laws. Other proprietary desks will also be shut down over time, one source said at the time.
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