Bank of America Seeks Power-Trading License
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A unit of Bank of America Corp., the third-largest U.S. bank, has asked federal regulators for a license to market and trade electricity.
The Charlotte-based bank would join Morgan Stanley, UBS and Goldman Sachs Group Inc. as financial firms with power-trading desks in the U.S. Bank of America filed the application with the Federal Energy Regulatory Commission on Sept. 3.
Bank of America has been trading natural gas and oil since 1989, spokesman Jeff Hershberger said. In late July, it began trading electricity derivatives, or contracts linked to power prices that don’t involve physical delivery.
It has hired seven electricity-derivatives traders in New York in the last several months, bringing its number of energy-commodity traders to about 60 in New York, London and Singapore.
Bank of America does not own any power plants, transmission lines or natural-gas pipelines.
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