Wall Street Bank Involvement with Physical Commodities

Publication

Wall Street Bank Involvement with Physical Commodities

Abstract

The Senate Committee on Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations investigated the recent rise of banks and bank holding companies as major players in the physical markets for commodities and related businesses. It presents case studies of three major U.S. bank holding companies, Goldman Sachs, JPMorgan Chase, and Morgan Stanley. The committee's case studies reveal that the U.S. is failing to separate banks from commerce and losing protection. The investigation finds that more action is needed to safeguard the U.S. financial system and protect U.S. taxpayers from being forced to bailout large financial institutions involved with physical commodities.