Goldman Sachs & Morgan Stanley Can NO LONGER TRADE COMMODITIES

Discussion in 'Wall St. News' started by ByLoSellHi, Sep 22, 2008.

  1. As bank holding companies, GS & MS can no longer trade commodities - it would be illegal per se.
  2. mind


    are you sure about that? does that affect their hedge
    funds? no, i'd say, but i am not sure. will it affect
    liquidity in some futures?
  3. I'm positive that banks and bank holding companies can't trade commodities.

    As this whole mess is on the fly, I'm checking to see if former GS head cheese Hank Paulson carved out a special preference for Goldman.
  4. Daal


    I dont think there is anything that prevents a bank holding of having an subsidiary that trades commodities
  5. I can't believe that GS would give up commodities. LB is a commodity man. More info necessary. Anyone know anyone over at J aron?
  6. MS has already shut down their Oil Hedge Programs. Good Riddance! I want both of them out, I am sure that they will get the boot. Dems in Congress are not letting this "bailout" plan pass congress untill all of their demands are met. They are calling for a much more detailed oversight of regulatory functions and standards. Good News, after the collaspe, perhaps all the Wall Street theives will be tar and feathered. Indictments are in order.

    The SEC needs complete overhaul.

    Going to get bad today. The EUR is already up to 1.46 from 1.415 Friday. That is over 450 pips and just getting going. Oil, Gold and Silver are starting to make their move. AS the fiat currencies print/dilute themselves into oblivion and become virtually worthless, the flight to Gold and Silver has just begun. Enjoy!
  7. Yes, J Aron is the commodity trading arm of GS, so any input from someone over there would be great.

    I am fairly confident that banks, bank holding companies and their subsidiaries may not trade commodities.
  8. Banks cannot have commodity operations. MS and GS will be getting a (temporary) exemption just as JPM did when it took over BS.

    As already stated, the entire regulatory system requires overhaul.
  9. mind


    even if they are not allowed to do certain things, i doubt
    that the regulations become effective overnight. i mean
    assume half of the big shops are closing their positions
    at the same day. paulson ain't that stupid.
  10. 2ticks


    Thanks to Hank, 5 days, the fasttrack of the normal 30 days banking application. Hank is not stupid: panic mode creates and allows for "unintended consequences"
    #10     Sep 22, 2008