UBS and Merrill Lynch lose energy traders

The latest sub prime mortgage-related write downs at investment banks UBS and Merrill Lynch, have hit their energy trading arms, and a number of traders have resigned or been made redundant in recent days.

Merrill Lynch was reported to have fired 10 crude oil and oil products traders in Houston and London at the end of April, representing a 10% reduction in oil and oil product traders at the company. This followed the bank reporting a first quarter net loss of $1.96 billion, or $2.19/share, compared to first quarter 2007 net income of $2.16 billion, or $2.26/share.

The bank declined to give official comment. A spokesperson noted, however, that while a further 2,900 cuts were expected across the