Reuters logo
U.S. Senate duo urges Fed clampdown on banks and commodities
April 16, 2014 / 8:11 PM / 4 years ago

U.S. Senate duo urges Fed clampdown on banks and commodities

WASHINGTON, April 16 (Reuters) - Two U.S. senators on Wednesday pushed the Federal Reserve to write tough new rules to limit Wall Street’s role in commodity markets, stepping up pressure for a clampdown on some of the country’s largest banks.

“Banks should be prohibited from owning physical assets like warehouses, pipelines, and tankers,” Sherrod Brown, an Ohio Democrat, and Elizabeth Warren, a Democrat from Massachusetts, said in a letter to the U.S. central bank.

The two have led a campaign against the role of large banks such as Morgan Stanley, Goldman Sachs and JPMorgan Chase & Co in physical commodity markets after complaints from companies about inflated prices.

The Fed has said it is reconsidering a previous policy that allowed banks to build up substantial activities in physical commodity markets, and has asked for comments from the public on a long list of questions.

For a link to the letter, click on: Reporting by Douwe Miedema; Editing by Tom Brown

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below