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Bank commodities stockpiling brings scrutiny from Commodity Futures Trading Commissions

CFTC’s Bart Chilton voices concerns on commodities trading

With vast networks of wealth between them and an ability to hold, acquire and store physical commodities on an almost infinite scale, it’s incredibly difficult to tease apart what the largest banks in the world actually physically own. This makes it nearly impossible to determine what kind of effect the stockpiling has on markets dependent on the relative supply of physical assets.

While regulatory bodies can see what banks like J.P. Morgan Chase, Goldman Sachs Group and Morgan Stanley are trading in the markets, it’s considerably more difficult to assess what they own in the way of physical assets and properties. But the bank-owned commodities are receiving increased focus, in part due to Commodity Futures Trading Commissions (CFTC) investigations on the effect they’re having in the commodities markets.

Executive Editor

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Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

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