November 18, 2013 / 6:50 PM / in 4 years

Senate hearing on Wall St's physical commodities trading postponed

(Reuters) - A U.S. Senate Banking Committee hearing on Wall Street’s role in physical commodities trading, which been scheduled for Wednesday, has been postponed, an aide to the committee said on Monday.

The Federal Reserve’s Director of Banking Supervision and Regulation, Michael Gibson, was due to appear as a witness, as was Norman Bay, director of the Office of Enforcement for the Federal Energy Regulatory Commission (FERC).

A new date for the hearing has not been announced. The reason for the postponement was not immediately clear.

The Federal Reserve has been reviewing Wall Street’s role in physical commodities trading amid increased regulatory and political scrutiny.

JPMorgan announced it was exiting physical commodity trading earlier this year, shortly before it agreed to a $410 million settlement with FERC over allegations of manipulation of California and Midwest power markets.

Goldman Sachs has faced scrutiny of its metals warehousing business, Metro International Trade Services, over allegations it has inflated wait times and prices for consumers.

The bank plans to resume talks with parties interested in buying its metals warehousing business, a source familiar with the matter said on Monday.

(Corrects name of FERC official in second paragraph to Norman Bay, from Michael Bay)

Reporting by Jonathan Leff in New York, Sarah N. Lynch in Washington and David Sheppard in London; editing by Tom Pfeiffer

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