25 JULY 2013www.ibtimes.co.uk
Goldman Sachs and Glencore to report on Aluminium 'Hoarding' to US Regulator
Edited by : AL CIRCLE
1 min read
Some of the world's biggest commodities traders - including market giants Goldman Sachs and Glencore Xstrata - have been ordered by a US regulator to preserve of all internal documents and emails relating to the storage of aluminium ahead of a potential investigation.
The New York Times reported that the US Commodity Futures Trading Commission is looking into how aluminium is shipped and stored by subsidiaries owned by the same banks that also trade in the metal. Fears have been raised that storage rents were artificially pushing up the spot price of aluminium.
An NYT investigation claimed that a Goldman Sachs subsidiary shuffled aluminium stocks around its warehouses each day, lengthening storage times and bloating rental costs, which pushed up the metal's market price and produced bigger profits.
Goldman said the ploy was not against any laws or regulations set by the London Metal Exchange (LME) which regulates the market.
The New York Times reported that the US Commodity Futures Trading Commission is looking into how aluminium is shipped and stored by subsidiaries owned by the same banks that also trade in the metal. Fears have been raised that storage rents were artificially pushing up the spot price of aluminium.
An NYT investigation claimed that a Goldman Sachs subsidiary shuffled aluminium stocks around its warehouses each day, lengthening storage times and bloating rental costs, which pushed up the metal's market price and produced bigger profits.
Goldman said the ploy was not against any laws or regulations set by the London Metal Exchange (LME) which regulates the market.
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