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The physical commodities activities of major banks such as Goldman Sachs (GS), JPMorgan (JPM)...

The physical commodities activities of major banks such as Goldman Sachs (GS), JPMorgan (JPM) and Morgan Stanley (MS) are set to be the subject of a Senate hearing on Tuesday, when legislators will explore whether banks should be allowed to continue to store metal, transport oil and operate mines. On Friday, the Fed said it's reviewing whether banks that take deposits should allowed to trade physical commodities. The Senate hearing and Fed review come amid an NYT investigation into how GS's activities have driven up aluminum prices.
Comments (2)
  • snorfy
    , contributor
    Comments (6) | Send Message
     
    We urge the Federal Reserve to look at the reality of the situation, not only the textbook hypotheticals. In the case of Morgan Stanley, for example, the CEO James Gorman and his board have stoutly refused to comply with the most fundamental regulations in the core business of the firm - pointedly refusing to comply with the SEC's Chief Compliance Officer reg, which was designed in part to 1) make the board more accountable for risk disasters, and 2) to assure the American public that large broker-dealers like Morgan Stanley were not rogue elephants all too pleased to wreck the village once a week. Gorman and his board have pointed refused to comply with the SEC's CCO reg. As we have said before, the Fed's concern with Morgan Stanley, as a result of this juvenile and arrogant defiance of the SEC - the Fed's concern with Morgan Stanley should be getting Gorman removed from office and replanting the board with some more responsible people. Morgan Stanley is on record saying it has no intention of getting out of oil trading when the five-year grace period allowed by the Fed expires. Notice no mention of cooperation with the Fed, discussion of new rules, no acknowledgement of the right of the United States of America to say "peep" about what the almight Gorman does. As we have said before - fire him. Morgan Stanley is too big, and touches too many lives to allow some kind of nut-job maverick lawyer to be at the wheel, who has to prove that American law does not apply to him. This nonsense regarding Gorman's refusal to appoint a CCO has gone on long enough with Morgan Stanley - fire him.

     

    Matt Lechner
    Chairman - WSSIG, the Wall Street Special Interest Group
    "supporting and growing America's interests in the global capital markets" 4714026@optonline.net
    21 Jul 2013, 09:04 PM Reply Like
  • Peter Schmotzer
    , contributor
    Comments (73) | Send Message
     
    This is what gives WS a bad name from the perspective of the public, and no wonder.
    21 Jul 2013, 10:40 PM Reply Like
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