WASHINGTON — Wall Street banks — and the trade groups and law firms that represent them — are challenging the Federal Reserve Board's basis for restricting ties banks have to physical commodities, arguing it is fundamentally flawed.

The central bank is worried that bank holding companies could potentially face significant legal liabilities if physical commodities they are tied to, such as oil tankers and natural gas pipelines, are part of an environmental disaster.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.