When the Federal Reserve gave JPMorgan Chase & Co. approval in 2005 for hands-on involvement in commodity markets, it prohibited the bank from expanding into the storage business because of the risk.
JPMorgan Chase & Co., Morgan Stanley and Goldman Sachs Group Inc. are among lenders whose commodity- trading is in jeopardy as the Federal Reserve reconsiders letting banks ship oil and store metal.
Federal Reserve Board spokeswoman Barbara Hagenbaugh said the central bank is working with prosecutors and the U.S. Treasury’s Office of Foreign Assets Control “on matters involving Iran and other sanctioned entities.”
"The Federal Reserve regularly monitors the commodity activities of supervised firms and is reviewing the 2003 determination that certain commodity activities are complementary to financial activities and thus permissible for bank holding companies."
- Barbara Hagenbaugh on Jul 19, 2013