Fed to issue rules notice on banks and commodities in early 2015
Reuters
Published Nov 21, 2014 09:33AM ET
Fed to issue rules notice on banks and commodities in early 2015
WASHINGTON (Reuters) - The Federal Reserve will issue in the first quarter of next year a formal notice of rules it has been reviewing for financial holding companies and their activities in the physical commodities markets, a top official with the U.S. central bank said on Friday.
"We are conducting a careful and thorough assessment of the costs and benefits of financial holding company engagement in these activities," Fed Governor Daniel Tarullo said in prepared remarks ahead of a Senate subcommittee hearing on the issue of banks' involvement with physical commodities.
Banks have come under heavy scrutiny for the huge stockpiles of oil, natural gas, electricity and metals and other commodities that they have accumulated as a compliment to trading and hedging operations.
The Fed has been reviewing how it regulates large banks with physical commodity holdings, and it invited public comments earlier this year.
The timing of the Fed's plan to issue a formal notice of public rulemaking on the issue in the first quarter was not previously known.
(Reporting by Michael Flaherty; Editing by Paul Simao)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.