24.11.2014 - Fed set to tighten commodities rules
The US Federal Reserve is preparing to unveil new restrictions aimed at making it harder for Wall Street banks to make big bets in the commodities markets, according to testimony on Friday from Fed Governor Daniel Tarullo. Tarullo struck an unexpectedly aggressive stance in his appearance in front of a Senate subcommittee that has been investigating the involvement of big banks in the markets for basic materials like coal, aluminum and gas. Tarullo said the Fed expected to issue a formal notice of potential new rules in the first quarter of next year. Those new regulations could force banks to amass more capital to protect against losses on holdings of commodities and restrict banks from some types of commodities operations that they are currently allowed to do.......................................Full Article: Source
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