Investment Banks Blamed for Oil Spike

mcclatchydc.com — After months of pummeling oil industry executives, Congress is zeroing in on a new alleged villain for today's record oil prices: investment banks, the same ones who've been instrumental in the housing meltdown. During two highly partisan hearings, Democratic lawmakers alleged that the lack of regulation for complex financial instruments is contributing to the oil price run-up, while Republicans defended the investment banks and their involvement in energy trading as merely reflective of supply and demand in world oil markets.

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