02.08.2013 - Letís (not) get physical: The commodities conundrum facing banks
Should banks own and trade physical commodities? That was the question asked of senior regulators by the US Senate Banking Committee last week. US regulators are reviewing the trading and ownership of physical commodities by banks following increasing concerns about the length of time London Metal Exchange warehouses are taking to deliver assets. A number of these warehouses are owned by bank and they have been accused of profiting from delays. Banks have also been accused of driving up prices, particularly in aluminium, because of the premiums owners are forced to pay for their metal to be delivered more quickly........................................Full Article: Source
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