BREAKING NEWS UPDATE on a story we first broke here in 2010 Goldman Sachs Sells Its Controversial Aluminum Warehouse Subsidiary Goldman Sachs Group Inc (NYSE:GS) has been accused of costing American consumers somewhere around $5 billion dollars in what analysts have called a “merry-go-round of metal” as the investment bank moved aluminum around its 23 warehouses in the Detroit area. Goldman Sachs: Moving the metal Goldman Sachs purchased Metro International in 2010, when Goldman purchased the company, aluminum purchases were generally delivered in about six weeks. However, in 2013, aluminum deliveries averaged about 16 months. Goldman, which owns the warehouses that it moves the aluminum to and from can charge storage fees that drive up the cost of the ubiquitous metal. While Goldman maintains that it complies with the standards set by the London Metal Exchange but that hasn’t made the SEC, Congress and others happy. Last month, Goldman found itself in front of the Senate Permanent Subcommittee on Investigations chaired by Sen. Carl Levin. Levin is not a fan of Goldman Sachs, JPMorgan Chase & Co. (NYSE:JPM) Chase and Morgan Stanley (NYSE:MS) ’s ownership of aluminum warehouses in Detroit, coal mines in Colombia and a uranium trading company in London believing that banks shouldn’t be involved in commodity markets. Looking back on our original story in 2010: Wall Street investment bank Goldman Sachs hoards tons of aluminum in a nondescript warehouse in one of the most neglected neighborhoods in Detroit. They have been accused by the US government and the SEC of holding aluminum off of the markets to drive up price. c. 2015, The BHFG
Posted on: Tue, 13 Jan 2015 01:29:17 +0000
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