CFTC probe of aluminum warehouses urged

Jul 30, 2013 | 06:52 PM | Michael Cowden

Tags  Aluminum, warehouses, manipulation, CFTC, Sen. Debbie Stabenow, Gary Gensler, LME, Goldman Sachs Metro

CHICAGO — The Commodity Futures Trading Commission (CFTC) should look into allegations that aluminum warehouse owners in the United States may be using London Metal Exchange rules to manipulate aluminum prices in potential violation of commodity exchange rules, the head of the Senate Agriculture Committee said July 30.

U.S. warehouses governed by LME regulations may be "slow-walking" aluminum deliveries to bolster profits from storage fees, according to Sen. Debbie Stabenow (D., Mich.).

"Buyers of aluminum allege that the current market price of aluminum is being skewed by those who own and profit from the storage of metal at warehouses," Stabenow said in a letter to CFTC chairman Gary Gensler.....

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