Trade Associations Submit Joint Comment Letter to FRB Regarding Activities of Financial Holding Companies Related to Physical Commodities

The Securities Industry and Financial Markets Association (“SIFMA”), the American Bankers Association (“ABA”), the Financial Services Forum (“FSF”), the Financial Services Roundtable (“FSR”) and the Institute of International Bankers (“IIB”) (collectively referred to as the “Associations”) submitted a comment letter to the Board of Governors of the Federal Reserve System (“FRB”) on complementary activities, merchant banking activities and other activities of financial holding companies (“FHCs”) related to physical commodities.

In the letter, the Associations stated that the public benefits of continuing to permit FHCs and their nonbank affiliates to engage in physical commodities activities greatly outweigh the potential risks of those activities, whether conducted under the complementary, grandfathering or merchant banking authorities.

See: Comment Letter.