04.07.2012 - As banks deepen commodity deals, Volcker test likely
The subtext of JPMorgan's landmark deal to buy crude and sell gasoline for the largest oil refinery on the U.S. East Coast was barely disguised. In joining private equity firm Carlyle Group to help rescue Sunoco Inc's Philadelphia plant from likely closure, the Wall Street titan cast its multibillion-dollar physical commodity business as an essential client service, financing inventory and trading on behalf of the new owners. This was about helping conclude a deal that would preserve jobs and avert a potential fuel price spike during the heat of an election year summer -- not another risky trading venture after the more than $2 billion 'London Whale' loss...............................................Full Article: Source
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