"Well you got your BS, most folks know what that stands for"
"Then you got your MS, that's More of the Same"
"Finally, a PhD is Piled higher and Deeper"
-punchline to a very cynical joke
From Bloomberg via Futures Mag:The Federal Reserve has expanded its scrutiny of banks’ physical commodities operations to encompass businesses run by Goldman Sachs Group Inc. and Morgan Stanley that Congress had previously authorized.But of course.
The Fed is examining all legal and regulatory exemptions that allow banks to participate in the commodities markets, said a person briefed on the process who asked not to be named because the review is confidential. The appraisal, aimed at minimizing potential risks to the financial system, has widened since the Fed said in July that it’s reconsidering its landmark 2003 decision to grant some lenders, such as Citigroup Inc. and JPMorgan Chase & Co., permission to expand into raw materials.
U.S. law restricts banks from owning non-financial businesses unless they get special exemptions. Goldman Sachs and Morgan Stanley were the two biggest U.S. securities firms until they converted into banks in 2008. A 1999 law “grandfathers” any commodities operations they had before Sept. 30, 1997.
“The way I read the statute, all commodities activities are grandfathered forever, subject to appropriate risk- management controls,” said Randy Guynn, head of the financial institutions group at law firm Davis Polk & Wardwell LLP, whose clients include Morgan Stanley and Goldman Sachs....MORE
Did I tell you about the BS, the MS and the GS?
