US regulators may remove Wall Street banks' licence to trade oil & gas.

FT: The Fed is reviewing permits for trading physical commodities issued over the past decade that allow them to own physical commodity assets such as takers of oil. The Fed clearly fears scope for malfeasance: “The Federal Reserve regularly monitors the commodity activities of supervised firms and is reviewing the 2003 determination that certain commodity activities are complementary to financial activities and thus permissible for bank holding companies.”
A US Senate subcommittee is scheduled to hold a hearing. Sherrod Brown, subcommittee chairman: “Regulators need to take a long, hard look at the practice of banks holding physical commodities. When Wall Street banks control the supply of both commodities and financial products, there’s a potential for anti-competitive behaviour and manipulation.”