Is a behemoth commodity trader such as Glencore International PLC too big to fail? Bank of Canada deputy governor Timothy Lane is wondering. “Could the failure of one of the large trading houses cause serious disruption in the commodities markets in which it played a market-making role?”
Lane asks in a speech Tuesday to the CFA Society of Calgary. “Could the losses that trading house incurs through the positions it has taken in commodities have significant knock-on effects on the financial system? We are far from having answers to those questions, but they need to be addressed.”..............................................Full Article: Source
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