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Wells Fargo tests new rule on metals

Published 12/20/2017, 09:50 AM
© Reuters.  Wells Fargo tests new rule on metals
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  • Fighting the last war, the OCC earlier this year put in place a rule prohibiting banks from placing bets on the prices of metals.
  • This hasn't at all stopped banks from continuing with their active metals leasing business, it's just that they now do it through non-bank affiliates who aren't backstopped by federal deposit insurance.
  • Wells Fargo (NYSE:WFC), however, wants to bring some of that business back inside its banking division, reports Reuters, and has asked for regulatory permission to do a platinum-leasing deal for an energy client. Why the need to do it under the bank umbrella? Financing costs for the bank would be cheaper than that for the non-bank unit, allowing Wells to offer better terms to customers.
  • Now read: Bank Of America And Wells Fargo: Leading Buffett's Banks In 2018?


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