Brad Samples, a commodity analyst at Summit Energy Inc. said the market could see more volatility after President Barack Obama laid out plans to overhaul financial regulation. Obama is pushing for new rules that would restrict banks from using money gathered from deposits to trade stocks and bonds as well as limit the overall size of banks.
If big banks like JPMorgan Chase and Bank of America were forced to separate or reduce their market trading businesses, it would cut out a large portion of liquidity for commodities and derivatives markets, Samples said.
“When you threaten to cut out the biggest market makers, by definition it will increase volatility,” Samples said
http://abcnews.go.com/Business/wirestory?id=9628532&page=1
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment