Monday, September 16, 2013

CFTC's Chilton calls for better transparency of banks' commodity assets to stop market manipulation

Reuters reports that Bart Chilton, a member of the Commodity Futures Trading Commission, has called for better transparency of banks' commodity exposures to end market manipulation.

And why is better transparency needed?

"It is still nearly impossible to figure out exactly what banks own," Chilton said in notes prepared for speaking in Michigan at an event on Saturday. 
"Unless we can see that, we can't reasonably and responsibly protect against market manipulations," he said.

Please re-read Mr. Chilton's comment as it confirms what your humble blogger has been saying about the need to bring transparency to banks since the beginning of the financial crisis.

In order to know exactly what banks own, banks must disclose their current global asset, liability and off-balance sheet exposure details.

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