Banks Tell Fed Commodity Business Benefits Outweigh Risks
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Banking-industry groups urged the Federal Reserve not to write new rules restricting their involvement in physical commodity businesses, arguing that the benefits they provide outweigh risks highlighted by lawmakers.
The Securities Industry and Financial Markets Association and four other groups representing lenders including Goldman Sachs Group Inc. pressed their case in a letter meant to counteract calls by Senators Sherrod Brown and Elizabeth Warren to bar bank ownership of “physical assets like warehouses, pipelines and tankers” because of safety, legal and reputation risks that could harm the financial system.