The Commodity Futures Trading Commission has sent letters to five Wall Street banks seeking more information about a tactic they use to sidestep U.S. trading rules for overseas derivatives, Bloomberg reports.
The Commission is seeking information from JPMorgan Chase & Co., Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc. and Morgan Stanley about the practice of removing parent-company guarantees from overseas trading. An unnamed agency official confirmed to Bloomberg that the letters had been sent. According to the Office of the Comptroller of the Currency, as of March 31 those five banks control 95 percent of cash and derivatives trading from U.S. bank holding companies, Bloomberg reports.
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