An article by Dan Berkovitz and Gail Bernstein published in the National Law Review assesses the Federal Reserve Board of Governors' proposals to impose new restrictions on banks' use of physical commodities. The Board recently proposed a rule that would impose new capital requirements and other limits on such physical-commodity-related activities at financial holding companies and issued a report, pursuant to Section 620 of the Dodd-Frank Act, recommending legislation to repeal several current authorities for banks to engage in physical commodities activities.

As a result of both legislative mandates as well as Congressional and public concern, the Board of Governors of the Federal Reserve System (Board) has been examining whether to impose new restrictions on the activities of banks related to physical commodities. Read the full article