Financial Times FT.com

Banks braced for Fed’s commodities decision

By Gregory Meyer in New York

Published: September 22 2009 22:00 | Last updated: September 22 2009 22:00

A year after Goldman Sachs and Morgan Stanley hastily converted to bank holding companies, the financial industry is awaiting Federal Reserve decisions that could reshape the commodity business that both have long dominated.

Each is involved in the little-advertised business of owning power plants or oil tankers. Their assets were threatened by forced divestment when the two banks came under Fed regulation last September, giving them access to emergency loans at the height of the financial crisis.

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