Fed Should Reverse Commodity Policy, CFTC's Chilton Says

"I don't want a bank owning an electric service, or cotton, corn or feedlots," Chilton, a Democrat, said in remarks prepared for delivery today at a conference of U.S. cotton growers in Lake Tahoe, California. "I don't want banks owning warehouses, whether they have aluminum, gold, silver or anything else in them." The Fed "can and should reverse" the policy, he said.''

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CFTC Chairman Gary Gensler, declining to comment on specific investigations, said at a Senate hearing on July 29 that his agency has legal authority to pursue manipulation of markets for metals and other commodities. The CFTC has sent letters to companies asking them not to destroy documents relating to warehouses registered by exchanges such as the London Metal Exchange or Chicago Mercantile Exchange, according to a copy of the letter obtained by Bloomberg News.