(Reuters) - Goldman Sachs Group Inc
The Wall Street Journal reported on Tuesday that Goldman had held "preliminary internal discussions" in recent years about splitting off its commodities business. The newspaper cited people briefed on the discussions in its report.
"While we constantly evaluate all our businesses, senior management never seriously looked at spinning out all or part of our commodity business," Goldman Sachs spokeswoman Sophie Bullock said in an email.
The news comes as Morgan Stanley
Wall Street banks, including Goldman, Morgan Stanley and JPMorgan
Their ownership of physical commodity assets, like power plants, oil storage tanks and metals warehouses, are also in jeopardy after Goldman and Morgan Stanley converted to Bank Holding Companies at the peak of the financial crisis.
The Bank Holding Company Act allows banks to trade in physical commodity markets, but restricts their ownership of the underlying assets.
The Volcker rule limits banks to largely trading on behalf of their clients.
(Reporting by David Sheppard; Editing by Maureen Bavdek)