Banks identified as systemically important to the global economy face tighter rules on how much business they can do with each other as part of a push to limit the chance a single failure would drag down multiple lenders
The Basel Committee on Banking Supervision published rules that from 2019 will cap one too-big-to-fail bank’s financial dealings with another at an amount no greater than 15 percent of its capital.
The measures also refine an existing rule capping the amount of business that a bank can do with a single counterparty at no more than 25 percent of its capital.[…]
Despite the selloff, gold is flashing a secret buy sign
Tuesday’s steep selloff breaks gold’s five-day winning streak. The yellow metal had hit a three-week high to $1,328 per ounce as tensions mount between Ukraine and Russia.
But, according to “Talking Numbers” contributor Richard Ross, global technical strategist at Auerbach Grayson, the rout is providing a good buying opportunity, as the charts are doing something they haven’t done in a while: flash a buy sign.
"There are some signs that make gold very attractive at these levels," said Ross. "I’m not a gold bug per se but I do like a nice chart and I think that’s what we can see here with gold. It has a lot of things in its favor."
JPMorgan Chase has agreed to sell its physical commodities trading unit to the Mercuria Energy Group, a fast-growing Swiss trading firm. The deal is valued at $3.5bn. The deal is expected to close in the third quarter.
Mercuria was founded by former Goldman Sachs traders and has become one of the world’s four biggest independent commodities traders. It has offices in 28 countries and employs more than 1,000 people.
The sale will enabke JPMorgan to comply with regulatory rules. The Volcker Rule, part of the Dodd-Frank financial regulatory overhaul, restricts banks’ ability to trade for their own accounts. That extends to limits on such firms’ abilities to engage in some commodities trading.
A consortium of state-owned Chinese companies led by China Minmetals Corporation, one of the country’s biggest metals miners, announced on Monday an agreement to buy a giant copper mine in Peru from Glencore Xstrata for more than $6 billion […]