Washington — Wells Fargo has asked its main regulator if it may buy platinum and lease it to a client, in a test of a new rule meant to limit banks’ exposure to volatile commodity markets, people familiar with the matter told Reuters. The Office of the Comptroller of the Currency (OCC) introduced the rule early this year to ensure that banks entrusted with customer deposits do not bet on price swings of metals. Wells Fargo would do the deal on behalf of an energy company and charge a fee for the service, said three people familiar with the request, who were not authorised to discuss it publicly. A green light could help Wells Fargo grow a business catering to industrial clients even as the bank grapples with several scandals in its retail division. Like other large lenders, the San Francisco-based company may already perform metal trades through a non-bank affiliate that does not rely on federally backed deposits. The US Federal Reserve oversees those entities. Wells Fargo said such...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.