U.S. official says new rules likely for banks in physical commodities

WASHINGTON Tue Jan 14, 2014 5:00pm EST

WASHINGTON Jan 14 (Reuters) - A U.S. Federal Reserve official will tell lawmakers on Wednesday that regulators expect to write new rules for banks' physical commodities activities, according to prepared remarks obtained by Reuters.

The rules could include higher capital requirements for banks engaged in those markets or prohibitions on specific risky holdings, Michael Gibson, the Fed's director of bank supervision and regulation, plans to tell a congressional panel.

Lawmakers and regulators have increasingly scrutinized Wall Street's practices in physical commodities markets in recent months. The Fed on Tuesday asked for public feedback on a range of steps to crack down on the biggest banks' activities.

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Comments (1)
s404n1tn0cc wrote:
Let them play with their own Private capitol and not the publics.

Jan 14, 2014 5:27pm EST  --  Report as abuse
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