Senate investigation says Wall Street misused commodities businesses


BLOOMBERG: Firms blurred line between banking and commercial activities at expense of consumers.

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BLOOMBERG: Firms blurred line between banking and commercial activities at expense of consumers.

“These banks have taken on dramatic new risks, risks that because of the size of these banks, fall not just on them but on the larger financial system ,” Senator Carl Levin, who chairs the Permanent Subcommittee on Investigations, said at a hearing today. “Their activities raise significant questions about whether banks are profiting at the expense” of other market participants, he added.

Months of scrutiny over banks’ involvement with commodities has spurred the Federal Reserve to consider tightening regulations and prompted some Wall Street firms to try to sell assets.

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