Bank physical commodity trading attacked in US Senate hearing
Physical trading by banks said to inflate commodity prices, increase systemic risk and threaten shortage of beer cans
The commodity trading activities of banks came under fierce criticism during a US Senate hearing on July 23, with senators and expert witnesses voicing concern that regulators had gone too far in permitting banks to own and operate physical assets, such as oil tankers and metal warehouses.
"This expansion of our financial system into traditional areas of commerce has been accompanied by a host of anti-competitive activities: speculation in oil and gas markets, inflated prices for aluminium and
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