Bank of America has drafted in Greg Mulligan, head of market risk-Europe in London, to replace Rick Grove as global head of commodity derivatives in New York, according to DW sister publication Power Finance & Risk. Grove has taken the new position of coo of the group, according to an official familiar with the firm. Mulligan was travelling at press time. Grove said in addition to risk management, Mulligan has extensive derivatives trading experience.
The decision to bring in a risk manager to run the group is seen as an attempt to stabilize a business unit that has been buffeted by senior management turmoil and persistent rumours of trading losses on its oil book, say officials familiar with the firm. In the last eight months the previous global head, David Mooney, resigned before landing at Trafigura Group in London (PFR, 3/24). Mooney was replaced by Grove and co-head Julian Barrowcliffe, who has since taken a leave of absence for personal reasons, according to a BofA spokeswoman. The group is believed to have suffered losses on oil positions run out of Singapore, say commodity traders in New York. Grove confirmed that BofA "hit a bump in the second quarter in parts of [its] oil business." He declined to elaborate on this point.
Mulligan is believed to be a trusted lieutenant of Jonathan Moulds, a senior manager at BofA in Chicago to whom the commodity group reports, according to a market official. "It's a typical Moulds move," another official adds, commenting on Mulligan's appointment. Moulds did not return calls.
James Hamilton, a senior market risk analyst at BofA in London, has replaced Mulligan.
