Commodity Trading By Wall Street Banks Under Threat Amid FED Review

Federal Reserve indicated it is reviewing its landmark 2003 ruling that allowed regulated banks to trade in physical commodity markets. Top global investment banks including Morgan Stanley (NYSE:MS), Goldman Sachs Group Inc (NYSE:GS), JPMorgan Chase & Co. (NYSE:JPM) are set to lose as they derive substantial revenue from commodity trading. FED statement on commodity trade On Friday, Reuters reported that the Federal Reserve is going to review the 2003 decision that allowed regulated banks to trade in physical commodity markets: “The one-sentence statement suggests the Fed is taking a much deeper, wide-ranging look at how banks operate in commodity markets than previously…