Federal Reserve asks Congress to limit Wall Street merchant banking

WASHINGTON/NEW YORK (Reuters) - The Federal Reserve Board recommended that Congress pare back Wall Street's ability to own physical commodities and engage in other aspects of merchant banking because of possible risks to the financial system, according to a report issued on Thursday. U.S. lawmakers should repeal grandfather status granted in 1999 for Goldman Sachs Group Inc and Morgan Stanley to conduct activities like storing and transporting physical commodities that other banks cannot do, the