Sep
08
Fed Urges U.S. Ban on Wall Street Buying Stakes in Companies
By-
Goldman Sachs could be most impacted by merchant banking limit
-
Fed among agencies issuing long-overdue report required by law
Goldman Sachs Group Inc. and other banks that invest in companies are officially on notice: The Federal Reserve wants that ability taken away.
Among several recommendations issued by U.S. banking regulators, one from the Fed urged Congress to prohibit merchant banking, in which firms buy stakes in companies rather than lend them money. In a report released Thursday, the agency also pushed for limits on Wall Street’s ownership of physical commodities after lawmakers accused Goldman Sachs and other banks of seizing unfair advantages in metal and energy markets in recent years…
Fed Urges U.S. Ban on Wall Street Buying Stakes in Companies
