Oregon’s Senator Jeff Merkley released the following statement after the Federal Reserve issued a new report that recommends Congress scrap the loophole that has allowed big banks to own physical commodities:
“It is common sense that big banks that are placing bets on the prices of commodities shouldn’t also be able to have their thumbs on the scale of supply and demand. I commend the Fed’s new report for recognizing this reality. This report gives Congress a clear mandate for action to make our banking system safer and fairer–and I plan to introduce legislation in the coming months that will do just that.”
merkley has highlighted the problems that can result from big banks’ involvement in physical commodities ownership, and has repeatedly asked Fed Chair Janet Yellen to use the Fed’s regulatory power to take action.