RWE eyes more savings at power plants: FRANKFURT/DUESSELDORF, July 22 (Reuters) – German utility RWE has launched a new savings programme to cope with loss-making power plants and low wholesale power prices, according to an internal document obtained by Reuters. The document said Germany’s No. 2 utility did not rule out job cuts at its power plant division as part of the programme, dubbed “Neo”. Neo has been launched on top of the group’s ongoing cost savings programme “RWE 2015”, aiming for additional cost cuts of about 1 billion euros by the end of 2014.
Federal Reserve reconsiders letting banks ship oil and store metal. The 10 largest Wall Street banks generated about $6 billion in revenue from commodities in 2012, including dealings in physical materials as well as related financial products, according to a Feb. 15 report from analytics company Coalition. Goldman Sachs ranked No. 1, followed by New York-based JPMorgan. For more than 50 years, the Bank Holding Company Act prevented federally guaranteed lenders, such as JPMorgan, from direct participation in commodity markets. The prohibition didn’t pertain to Goldman Sachs and Morgan Stanley, which were investment banks, until they became bank holding companies in 2008. After that, the Fed gave both firms a five-year grace period, which expires in September, while regulators decided whether to curtail their activities related to metals, fuels and other goods. Full article on Bloomberg: