GOLD/SILVER

London calling…

FT Trading Room / Regulation - Proposed trading caps anger bankers

Good morning Bill and Chris,
If this FT article is correct then the CFTC are proposing to move much more firmly than is generally understood to limit the activities of the big banks in the US energy markets.

Here is a quote from the article:-

"Bankers are privately steaming. "We are confused as to why the CFTC would create a hedge exemption process that no bank would be able to use and continue to serve their customers," says a commodity executive at a swap dealer."

Do you think that the above plus the proposals to return to a Glass-Steagall type banking environment may just indicate that Obama has woken up to some of the real problems he faces? Do you think this makes it impossible for Lawrence Summers to carry on in this administration since he was one of the key architects of the system that created the modern monster banker/traders?

Surely all of this is very positive for gold and silver, provided of course that the changes happen.

Have a great weekend,

Bob

http://www.ft.com/cms/s/0/8ccaa85a-06c8-11df-b058-00144feabdc0.html