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Goldman Sachs Offers to Release Aluminum Amid Accusations of Stockpiling

  +Follow August 1, 2013 6:46AM
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Facing worldwide shortages, Goldman Sachs Group Inc (GS) has indicated that they might run loose some of their massive stores of aluminum. The financial giant has come under intense scrutiny following reports that they were deliberately mismanaging aluminum shipping to cause worldwide shortages and ultimately profit off of a manipulation of the commodities market.

The New York Time alleged that the bank choreographed an “industrial dance” that artificially raised the price of the metal, thus gouging consumers out of billions of dollars. Aluminum is used widely the world over to make soda, juice, and beer cans. The United States alone goes through 90 billion cans of aluminum a year.

Analyst Tim Wiener of beer manufacturer MillerCoors LLC testified to the U.S. Senate that increased warehousing times for aluminum had inflated aluminum prices $3 billion in 2012.

Banks involvement in the commodities market has long been historically prohibited by American regulation. The first indications banks would be able to get into commodity trading began with the gradual dissolution of the Glass-Steagall Act in 1999, which prohibited commercial and investment banks from engaging in the same activities.  In 2003 the Federal Reserve officially began allowing investment banks to trade physical commodities.

If Goldman has been manipulating the commodities market (and evidence is mounting that they did create artificial aluminum scarcity to drive up prices) it raise the question of whether investment banks should be allowed in the commodity market at all. Since the investment banks are now allowed to own warehouses and shipping ventures, they are made privy to knowledge concerning commodity storage and shipping that oftentimes would be considered insider trading. But simultaneously owning commodites and trading their futures is entirely legal, thanks to the 2003 decision.

But possibly not for long.  A proposed new regulatory bill, dubbed the “21st Century Glass-Steagall,” currently enjoys bi-partisan support. And on July 20 the Federal Reserve elected to review that decision, which could force the banks out entirely.

Other investment houses are voluntarily divesting from physical commodities trading, as threat of legal action increases. JP Morgan Chase & Co. (JPM) is fleeing the commodities market altogether, and is putting their entire trading desk up for sale. On July 29, JP Morgan was forced to pay out a settlement of $410 million for engaging in price manipulation of the power market.

But for the time being, Goldman, while releasing a large chunk of their stored metals, have no intention of leaving commodities altogether. Goldman CEO Gary D. Cohn has already said, “Commodity hedging is a core competency and one of the most important things we do in the firm, and our clients really need us to be in that business. We are staying in.”

Goldman’s stock was up .99 percent to close the day at $164.03. The stock is up 23.37 percent on the year.

Results for gs
4-traders.com
20 Apr 14 14:10:01
Investors vexed by WH Group's army of IPO underwriters http://t.co/ZaFDrLBURS $GS $MS $UBSN $1339 $BBSE3 $6881 $0QNR
Stock Herald
20 Apr 14 14:06:34
$GS: Goldman Sachs fails! Goldman Sachs triumphs! http://t.co/QPRkTOlbaV
Vakis Kalogeropoulos
20 Apr 14 13:31:25
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Informer
20 Apr 14 13:23:06
$GS: Goldman Sachs fails! Goldman Sachs triumphs! http://t.co/0MRWvkH7nx
Eternity101
20 Apr 14 13:19:41
$GS - Support: 157 Resistance: 158
Gary Hudson
20 Apr 14 13:19:17
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Gary Hudson
20 Apr 14 13:18:57
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 12 Innovative financing is positioning #energy co.'s for success: http://t.co/q1UMJ…
stocknews247
20 Apr 14 13:17:05
$GS - Goldman Sachs fails! Goldman Sachs triumphs! -> http://t.co/RLl5MMHRDk #stock #stocks #stockaction
Cindy
20 Apr 14 13:12:23
http://t.co/zW8X988V7x #Banksters Behind #Wars -Ex $GS Nomi Prins- Gutle Rothschild:"If my sons did not want war there would be none" #tcot
Greg
20 Apr 14 13:09:41
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Sangshin Jung
20 Apr 14 13:05:10
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Jobs4Jo
20 Apr 14 13:01:09
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Patrick Fuchs
20 Apr 14 12:58:25
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Gerardo Rojas
20 Apr 14 12:55:06
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
ToutBerbere
20 Apr 14 12:53:42
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Folarin Lade
20 Apr 14 12:49:33
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Nilesh
20 Apr 14 12:47:50
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Dr Ausberto Torres
20 Apr 14 12:46:44
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
سليمان جبر
20 Apr 14 12:45:18
RT @GoldmanSachs: 25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http:/…
Goldman Sachs
20 Apr 14 12:45:06
25 ways $GS saw the world change: No. 17 #Entrepreneurs + right answer + right time = rapid growth. #GSAnnual2013: http://t.co/d2Lw8TnpX0
john doe
20 Apr 14 11:23:05
Can institutions become to big for their clients $gs
Jerry
20 Apr 14 10:38:23
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Darryl Hudson
20 Apr 14 10:37:00
Are you considering buying $SKT $GS $CBSH $S #equity http://t.co/UfE1nYHc3g
Stock Occulus
20 Apr 14 09:57:42
$GS [$$] The Best Way to Fin http://t.co/LU4tdN1CBe
Stockaholics
20 Apr 14 09:32:15
Our Penny Stock Newsletter Picks, gained 5,000% in 4 months! Subscribe Today: http://t.co/5B5saivZk0 $GS $ZION $ISRA
Mariano Husher
20 Apr 14 09:24:26
#Stocks you migh want to Sell $LB $GS $SYY $YOD #economy http://t.co/LH2WTYwwII
Mind Equity
20 Apr 14 08:39:33
$GS Wall Street is awash in c http://t.co/tHOjBXENR8
Eve
20 Apr 14 08:08:41
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Will Kirk
20 Apr 14 07:03:15
RT @SeekingAlpha: Goldman Sachs: Earnings Will Be Lower, But Will Still Crush Wall Street Expectations http://t.co/jnGo0K2y7L $GS
Stock_Tracker
20 Apr 14 06:41:53
Goldman Sachs Group (GS) 157.44 $GS Providence, RI, sues firms over stock trades By The Associated Press - AP http://t.co/3ugDNsl6AF
CABuyer
20 Apr 14 06:33:03
$GS Wall Street is awash in cash http://t.co/OhqpOlAwsS
George Salib
20 Apr 14 06:32:54
Cloud Trader Weekend Update 4/20/14 $ES_F $SPY $QQQ $NQ_F $IWM $TF_F $DIA $YM_F $GS $MA $IBM $PCLN GOOGL $AMZN http://t.co/8CV7Y25BN0
Bettie Pagan
20 Apr 14 06:07:42
Do you think you should hold $GS $HP $WTR $AMZN #NSE http://t.co/a4ROFA8x2C
paqui
20 Apr 14 05:40:14
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Simple Job
20 Apr 14 04:38:38
RT @nonvacancyim: Get more info on $CPRT $WOOF $GS $USD #money http://t.co/HCpLZDvnzp
Leighton Aldaine
20 Apr 14 04:17:19
Get more info on $CPRT $WOOF $GS $USD #money http://t.co/HCpLZDvnzp
Informer
20 Apr 14 04:06:35
$GS: Wall Street is awash in cash http://t.co/aWGVSADAvA
GavinGreenberg
20 Apr 14 03:23:09
$GS: Wall Street is awash in cash http://t.co/MvDrvdhEN7
UCI Realty
20 Apr 14 03:11:43
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
Keon Carlisle
20 Apr 14 02:44:33
It could be breaktout time on $ADI $ALKS $GS $CAG Worth a look http://t.co/wmZfmjbGG7
Laci Jack
20 Apr 14 02:41:13
Some Stocks to Watch $RHI $BMY $GS $GOOG #singedinvestor http://t.co/nDcCa8HLvy
Finance Wire
20 Apr 14 02:01:43
Seeking the next stock like $GS $EXPD $OV $SPY #liquidity http://t.co/6uaEcPIDxD
Clair White
20 Apr 14 00:40:02
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
JB
19 Apr 14 22:08:47
#Buy $DNAX #DNA #Energy #Drinks #New #CEO #Real #Experience > $FNMA $HEMP $PMCM $PHOT $PLPL $CBIS $JPM $GS $MS $TSLA $FB $TWTR $GOOG $MSFT
PriceTrader
19 Apr 14 21:30:16
it will either rebound and participate(if trend will not bend)in a rally or it will just get ugly and my OTM calls will expire worthless $gs
PriceTrader
19 Apr 14 21:28:22
monday morning $gs dip=thanks. if i will get filled on may 30 160 call at 2.40 or so, i will be happy. r/r decent
PriceTrader
19 Apr 14 21:22:56
last 5 times I followed this indicator, i closed all these ST trades at decent gain and it worked out this year too $GS
PriceTrader
19 Apr 14 21:16:51
$gs is getting no love at all, chart looks ugly. everything bad, but my indicator gave buy signal http://t.co/JHNtsJnX80
luckypete
19 Apr 14 20:22:10
$GS TA 6MO/D Chart, after DEATH CROSS, losing both 200SMA & 50SMA, stock climbing w/good pattern, while RSI climbing, still 50, MACD buried<
Charles Maddox
19 Apr 14 20:09:18
RT @SJosephBurns: RT @Sassy_SPY: No Such Thing As MaxPain Huh? Fine Let's Call It SassyPain $TWTR $BIDU $TSLA $AAPL $FB $GS $SPY $GOOGL htt…
				
				
  +Follow August 1, 2013 6:46AM
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