Bloomberg News reports that Goldman Sachs produced $1bn of revenue from its commodities unit and investments in commodity businesses in 2012, down from $3.4bn in 2009, according to a Senate Permanent Subcommittee on Investigations report released on banks’ involvement in those markets.
Morgan Stanley’s commodity revenue fell for four straight years, from $3bn in 2008 to $912m in 2012, according to the report.
The Senate subcommittee, led by Michigan Democrat Carl Levin, conducted a two-year investigation of banks’ physical-commodities businesses as part of scrutiny from lawmakers and the Federal Reserve. The panel’s report found that big Wall Street firms have used such units to take advantage of markets and are failing to guard against potential catastrophes.
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