LONDON/WASHINGTON, July 31 (Reuters) – Britain’s financial
watchdog is considering an investigation of the London Metal
Exchange warehouse system after U.S. regulators put banks and
big traders on notice of a probe due to complaints of inflated
prices, two sources said.
The move would mark a change in tack by the Financial
Conduct Authority (FCA), which has said it regulates the
exchange and the futures derivatives market for commodities but
not warehousing or the physical markets.
WASHINGTON, July 30 (Reuters) – Wall Street banks face the
prospect of increased scrutiny of their commodity businesses as
U.S. regulators and lawmakers on Tuesday pressed for a closer
look at their roles in owning warehouses and in trading
everything from oil to metals
Under pressure from a handful of lawmakers to explain why
banks including JPMorgan Chase & Co. and Goldman Sachs
have been allowed to own warehouses and trade physical
commodities, regulators have scrambled this month to demonstrate
that they are tackling the issue.
WASHINGTON, July 30 (Reuters) – The top U.S. securities
regulator said on Tuesday she was examining insider trading
rules for commodities, further stepping up scrutiny of Wall
Street’s role in trading anything from oil to metals.
The move comes after JPMorgan Chase & Co – under
pressure from regulators – said last week it would exit physical
commodities trading, and as Europe is
drastically stepping up its rules for commodity trading.
WASHINGTON/NEW YORK (Reuters) – Wall Street’s multibillion-dollar commodity trading operations came under the political spotlight on Tuesday as a powerful Senate committee questioned whether commercial banks should control oil pipelines, power plants and metals warehouses.
The Senate Banking Committee hearing comes as Goldman Sachs, Morgan Stanley and JPMorgan Chase – which generated an estimated $4 billion in commodity revenues last year – face growing pressure from a number of investigations into their operations, and as the Federal Reserve reviews Wall Street’s right to operate in raw material markets.
(Reuters) – In March, as U.S. bank regulators were framing a new rule that would affect the $630 trillion derivatives market, JPMorgan Chase & Co sent five bankers from New York and London to Washington to raise some fine points about the impact of the financial reform.
In a jargon-laden, 23-slide presentation, the JPMorgan bankers walked regulators through the complexities of how their decisions would affect the arcane market, according to documents and a person familiar with the meeting.
July 21 (Reuters) – In March, as U.S. bank regulators were
framing a new rule that would affect the $630 trillion
derivatives market, JPMorgan Chase & Co sent five
bankers from New York and London to Washington to raise some
fine points about the impact of the financial reform.
In a jargon-laden, 23-slide presentation, the JPMorgan
bankers walked regulators through the complexities of how their
decisions would affect the arcane market, according to documents
and a person familiar with the meeting.
WASHINGTON, July 16 (Reuters) – A conflict over a U.S. plan
to force foreign banks to hold more capital should be part of
talks about a free trade agreement between the United States and
the European Union, a top EU official said.
Michel Barnier, the 27-nation bloc’s regulation
commissioner, said a comparison between EU and U.S. rules that
prohibit banks from gambling with their own money should also be
on the agenda of the talks.
WASHINGTON, July 12 (Reuters) – The top U.S. derivatives
regulator on Friday adopted guidelines on how to apply its rules
abroad, granting some respite to Wall Street banks worried that
a jumble of new international rules would hurt their business.
The U.S. Commodity Futures Trading Commission allowed
foreign branches of U.S. banks to comply with other countries’
regulators for some of its trading rules, but only after a
determination of whether the rules were tough enough.
WASHINGTON/BRUSSELS (Reuters) – The European Union agreed with U.S. regulators Thursday on how to jointly supervise foreign derivatives traders operating in their territories, solving a months-long trans-Atlantic rift.
The two sides agreed to rely more on each other’s rules – drawn up to make banking safer after the 2007-09 credit meltdown – and will allow banks some flexibility to get out from under the most cumbersome new oversight.
WASHINGTON (Reuters) – The top U.S. derivatives regulator is within reach of a compromise over how its rules apply to foreign companies dealing with U.S. banks, a source close to the negotiations told Reuters.
Friday is the last day the Commodity Trading Futures Commission (CFTC) can decide on the issue, as a broad temporary relief for foreign companies expires. Having no rule in place would cause regulatory chaos and invoke the wrath of already critical politicians.