Banking on Global Scams

There is this interesting piece of journalism from NY Times. It talks about how a handful of banks are keeping the multi-trillion dollar derivatives trading to themselves, especially in Commodities markets.This is really interesting, and it exposes us to a world which is widely spread, but little is spoken and written about it...(and even lesser blogged!)... the world of commodities trading and hedging. Let me first start by explaining how and why Commodity companies use derivatives for hedging.