Tougher Fed Rules Could Drive Banks From Commodity Biz

Law360, New York (October 17, 2013, 7:28 PM EDT) -- The Federal Reserve is reportedly mulling imposing a capital surcharge on banks that own energy assets and other physical commodities, a move experts say could be the final nudge for banks to get out of the commodity business as they face heat over the potential for market manipulation and risk to the U.S. financial system.

The central bank is considering a plan that would force banks to hold higher levels of capital to account for risks from holding physical commodity assets such as power plants and...
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