According to Livetrading news: Wall Street’s biggest banks are locked in a struggle with the US Federal Reserve over the right to retain Key elements of their commodity trading empires: warehouses, storage tanks and other hard assets worth billions of dollars.
The battle over proprietary trading and new derivatives regulations is taking place in public view since the Y 2008 financial crisis, but the fight by JPMorgan Chase, Morgan Stanley (NYSE:MS) and Goldman Sachs to retain or expand their prized physical commodity operations is taking place in the “Hush, Hush.”
Call it socialism for the rich or whatever,,,,it appears that within the next 18 months, the US Fed will likely either allow banks more freedom to invest in the physical commodity world than ever; or force them to sell off the assets that many banks are counting on to bolster their trading books at a time when they are already vulnerable because of intensifying competition and new trading restrictions. The big banks are now locked in deep debate with the Fed.....
Read more at http://www.livetradingnews.com/commodity-wars-wall-street-vs-us-fed-64467.htm
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