Keeping on the commodity theme for today, Livesquawk note an FT article that the BOE wants to check commodity exposure
You can't fault the BOE for trying to do it's job properly (once bitten and all that), so the PRA wants to get a sniff at banks and financial institutions exposures to commodities, notes the FT
They've possibly been spooked by all the analyst calls following the Glencore saga about exposure to the sector, something commodity insiders disagree with
"I don't think these analysts realise how well trading houses are performing at the moment or that working capital requirements have fallen sharply with commodity prices," said one commodity finance banker who declined to be named.
Still, we've been quick to bash the central banks for being so far behind the curve on the crisis that we should at least give them some kudos when they do get involved. Shame it only comes after over a year of price falls in commodities. Better late than never eh? ;-)
