U.S. financial regulators will boost scrutiny of banks’ commodities holdings and use their authority to pursue evidence of fraud and manipulation, the heads of two agencies told lawmakers.
“We’re a market regulator overseeing the commodity futures, swaps markets and have clear authority to police markets for fraud, manipulation and other abuses,” Commodity Futures Trading Commission Chairman Gary Gensler said at a Senate Banking Committee hearing where he testified yesterday alongside Securities and Exchange Commission Chairman Mary Jo White. “We will use those authorities appropriately where we see abuses and pursue it.”
