An "industrial dance … choreographed by Goldman"" and others has cost consumers $5B or more over...

|By:, SA News Editor

An "industrial dance … choreographed by Goldman"" and others has cost consumers $5B or more over three years by driving up the premium on aluminum in the spot market, The NY Times says. Since Goldman bought Metro International Trade Services in 2010, warehouse customers' wait for deliveries has gone from six weeks to 16 months. The strategy allegedly involves paying incentives to encourage banks, hedge funds, and traders to renew aluminum leases and then shifting that metal from one warehouse to another in order to comply with regulations which require 3K tons to be shipped each day. Banks may also derive a trading edge from the "valuable market information" they collect by controlling warehouses, the Times notes. (previous)