Fed May Review Banks’ Merchant-Banking Exemption, Tarullo Says
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Senator Carl Levin’s push to rein in physical commodity businesses at banks including Goldman Sachs Group Inc. may lead to even broader limits on those firms.
Federal Reserve Governor Daniel Tarullo said the central bank might review the merchant-banking exemption that lets banks invest in non-financial businesses on a temporary basis, including in commodities-related operations such as coal mines and warehouses for metal.