Bank commodity trading
It has become known that several of our largest banks are trading physical commodities. These big financial institutions own oil tankers and warehouses and have been trading everything from petroleum to metals. It appears they have been using these warehouses and tankers to store, and intentionally delay, the delivery of materials that are critical to industry, producing artificial shortages to drive up prices. Critics say banks should not be engaged in commodity speculation, to say nothing of rigging our markets. Not long ago, metal users such as beer can manufacturers testified that banks had delayed the shipment of copper and aluminum to end users, intentionally causing prices to rise. They say that metal warehouses owned by banks drove brewer’s prices up $3 billion in 2012. After several government agencies began investigating charges of insider trading, JP Morgan promised it would exit the commodities business. In 2013, this firm was sanctioned by the Federal Energy regulatory Commission for manipulating energy prices. Consumer advocates say this shows how far banks will now go to increase revenue, without regard for our economy. They warn of the possibility of other financial institutions manipulating prices of essential consumer commodities.

Pending Legislation: None

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Poll Opening Date
May 21, 2020
Poll Closing Date
May 27, 2020

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