World Perspectives
energy

Banks and Commodities: How the Coming Fed Rule Evolved

Prior to 1999 banking law reforms, bank holding companies were permitted to engage as principals on cash-settled derivative contracts as well as derivatives that allowed for physical settlement, provided the holding company made good faith effort to avoid delivery of the commodity.The Senate Permanent Subcommittee on Investigations held a two-day hearing at the end of last week, "Wall Street Bank Involvement with Physical Commodities." This followed a two-year study of banks and their holding companies that own physical commodities or control warehouses, pipelines or power plants. The over 800-page analysis and supporting documents were released on Wednesday, but there was little discussion of that material as the hearing started Thursday w...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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