Five years after one of the most costly financial crises in U.S. history, the 18 largest banks still fall short in at least one of five areas critical to risk management and capital planning, the Federal Reserve said.
The Federal Reserve’s review of its decision to let banks store, transport and trade raw materials signals a potential rebuilding of the wall between banking and commerce that legislation and rulemaking have eroded.
The executives of the largest U.S. banks have lately been trying to make the case that they are as subject to market discipline as anyone else: If they get into trouble, they will be allowed to fail, no matter their size. Taxpayers won’t have to worry about bailing them out.
Four Democratic lawmakers sent a letter to Federal Reserve Board Chairman Ben S. Bernanke asking if investments in the commodities business by Goldman Sachs Group Inc. and JPMorgan Chase & Co. pose risks to the economy.
Former SAC Capital Advisors LP junior portfolio managers Noah Freeman and Donald Longueuil were charged with insider trading while working at the $12 billion hedge fund, the latest round of charges in a nationwide crackdown by federal prosecutors.