(Reuters) Wall Street is pushing back against a proposed rule to force U.S. banks like Goldman Sachs Group Inc to hold more capital against investments in commodities, placing what some see as an overly restrictive limit on banks’ ties to the sector.
In a comment letter filed late on Friday and not yet made public, the industry argues the proposed rule would hurt the economy, and that fears about environmental risks from physical commodities activities are overblown.The U.S. Federal Reserve handed down the proposal in September, after a public backlash stemming from the belief that big banks’ involvement in commodities markets hurt consumers by driving up prices.
