Wall Street Banks Face Threat From Restored Commodities Barriers

The U.S. Senate Banking Committee is set to question today banks’ investments in physical commodities assets. Should commercial banks control oil pipelines? The Senate Banking Committee’s Subcommittee on Financial Institutions and Consumer Protection, led by Ohio Democrat Sherrod Brown questioning whether commercial banks should control oil pipelines, power plants and metals warehouses, according to a Reuters report. Last Friday, the Federal Reserve reportedly reviewed the 2003 decision that permitted regulated banks to trade in physical commodity markets. Citi was the first to obtain permission In 2003, Citigroup Inc. (NYSE:C) obtained permission from the Federal Reserve to allow Citi’s Philbro unit to…