Goldman Sachs denies warehouse allegations

Jul 24, 2013 | 02:50 PM | Andrea Hotter

Tags  Goldman Sachs, Metro International, London Metal Exchange, warehouses, MillerCoors, aluminum, Senate hearing, andrea hotter

NEW YORK — Goldman Sachs Group Inc. has denied allegations that its warehousing company, Metro International Trade Services LLC, deliberately creates aluminum shortages and moves metal between London Metal Exchange-approved warehouses to earn more rent fees.

"In fact, it is the owners of the metal who direct warehouse operators to dispose of stored metal or transport metal from LME-approved warehouses to warehouses outside the LME system to meet their own needs or objectives," the investment bank said.

Goldman Sachs came under fire during a July 23 Senate committee hearing on the role of U.S. banks in physical commodities. An executive at U.S. brewer MillerCoors LLC claimed the bank deliberately slows deliveries from its facilities in Detroit, leading to long wait times and higher premiums to access material.....

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