Search
 

Wall Street Defends Banks' Commodity Trading

As regulators scrutinize investment banks' involvement in commodities, bankers say they provide vital liquidity to oil, natural gas, and other markets.

By Silla Brush and Cheyenne Hopkins, Bloomberg | Updated on September 19, 2013

Banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co., facing regulatory scrutiny of their commodity trading, provide liquidity in oil, natural gas, and other markets that can’t be easily replaced, according to a report commissioned by Wall Street’s main lobbying group.

The firms’ ability to trade physical commodities and related financial derivatives helps airlines and natural gas power plants hedge against changes in commodity prices, according to the report from IHS Inc. released today. The report, commissioned by the Securities Industry and Financial Markets Association, said efforts to curb banks’ role in commodity markets would hurt their commercial and industrial clients.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.