Fed rethinking move allowing banks to trade physical commodities

A view shows an eagle sculpture on Federal Reserve building in WashingtonBy David Sheppard and Josephine Mason NEW YORK (Reuters) – The Federal Reserve is "reviewing" a landmark 2003 decision that first allowed regulated banks to trade in physical commodity markets, it said on Friday, a move that may send new shockwaves through Wall Street. The one-sentence statement suggests the Fed is taking a much deeper, wide-ranging look at how banks operate in commodity markets than previously believed, amid intensifying scrutiny of everything from electricity trading to metals warehouses. …

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