July 22, 2013
This weekend The New York Times published a big story on Metro International Trade Services, a Detroit-based aluminum storage company owned by Goldman Sachs.
The NYT reported that Goldman shuffles the commodity around between storage units to skirt regulations meant to keep the commodity moving through the market and increase demand (and thus price) for the product. The paper calculated that this could have cost American consumers $5 billion over the last few years.
Goldman denies any wrongdoing.
And in fact, a source close to the situation told Business Insider that, as a rule, Goldman doesn’t control the flow from its warehouses; the aluminum is owned by customers and they decide when it moves.
This article was posted: Monday, July 22, 2013 at 10:36 am