CFTC Official Says Banks Shouldn't Own Commodities

Law360, Chicago (August 5, 2013, 7:55 PM EDT) -- A top official at the U.S. Commodity Futures Trading Commission on Monday backed the reversal of a Federal Reserve policy that has permitted banks to own physical commodities, saying regulators can barely even track down data on what the banks actually own.

During a speech at a conference of cotton growers in California, CFTC Commissioner Bart Chilton said there are “obvious conflicts of interest” arising from the policy, which the Fed said it was reviewing last week.

“Why can’t the banks just get back to banking?...
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