Big Banks Busted Manipulating Aluminum and Copper Prices

[zeos3]

http://www.washingtonsblog.com/2013/07/big-banks-busted-manipulating-aluminum-and-copper-prices.html

The New York Times reported yesterday that Goldman Sachs has been scalping consumers of billions of dollars by manipulating the amount it charges to warehouse aluminum in its storage facilities.

And the Times notes that Goldman and JP Morgan are doing the same thing with copper.

Here is a link to the NYT article:

http://www.nytimes.com/2013/07/21/business/a-shuffle-of-aluminum-but-to-banks-pure-gold.html?pagewanted=all&_r=3&

Only a tenth of a cent or so of an aluminum can’s purchase price can be traced back to the strategy. But multiply that amount by the 90 billion aluminum cans consumed in the United States each year — and add the tons of aluminum used in things like cars, electronics and house siding — and the efforts by Goldman and other financial players has cost American consumers more than $5 billion over the last three years, say former industry executives, analysts and consultants.

The inflated aluminum pricing is just one way that Wall Street is flexing its financial muscle and capitalizing on loosened federal regulations to sway a variety of commodities markets, according to financial records, regulatory documents and interviews with people involved in the activities.

[SoCalDem]

1. Is anyone surprised by anything big banks do anymore?

They are truly the masters of the universe, manipulating everything, so they win... and we all lose..

Until they are broken up, splintered into manageable parts, this will always be the way.

[spinbaby]

18. I'm surprised

I'm surprised they're in the metal storage business, not surprised that they're ripping us off.

[matthews]

25. Next they will demand the right to harvest the fillings in our teeth prior to burial or

cremation and no doubt the administration will allow that too.

What ever happened to laws that governed unfair or fraudulent business practices? For that matter, where are laws covering monopolies? I've given up asking whatever happened to RICO statutes.

[joeybee12]

19. I'd be surprised by anyone being surprised by this...

Actually, I'm suprised its not closer to $7billion.

[trof]

22. No. Nothing they do surprises me any more.

I am reviled by it, but no longer 'surprised'.
Just BAU.

[arcane1]

2. Kick!

[hedgehog]

3. Holy shit! My husband's company withheld all bonuses this year - about 10%

of our annual income. Ouch! now I know why!

[enough]

4. I remember hearing Max Keiser talk about this sort of thing and eventually concluding he was a bit

nuts.

Maybe I should get back to Max again and find out what sort of nutsness he's talking about now!

[zeos3]

10. I have the same relationship with Max.

Sometimes I just can't figure out who or what is "nuts".

[Hydra]

15. Max sounds nuts

Unless you know some of the games the banks are playing. And they are playing a LOT of games.

Knowing the economics of what's going on gives you a roadmap to all of the chaos that's happening. It's insane, but it's all money and power leading to dead bodies.

[mick063]

5. With a Goldman Sachs man holding a seat on the cabinet.

What else would you expect?

"Too big to prosecute", says Eric Holder.

[Squinch]

6. Yeah, so what? Nothing will happen to them.

[zeos3]

8. Stop that!

The cynical me agrees with that statement but I really want to try to disagree with it.

[Squinch]

31. I know. But it's true.

[bemildred]

7. That's what they do. nt

[Safetykitten]

9. This is just a sideline. Busy work. I am sure Holder is on board.

[htuttle]

11. Racketeering

I would love to see RICO used in cases like this.

Not to mention Civil Forfeiture...

[Monk06]

30. The Gottis, Bananos and other mafia families must be kicking themselves for not getting into

banking. The Russian mob are way ahead of the curve on that one tho. They only target big manufacturing and financial companies. No minor rackets for them.

And yes Goldman Sachs and the rest of Wall Street are racketeers and out in the bright light of day.

[indepat]

12. Nothing to see here, so let's move on and help expose a non-descript whistle-blower.

[dbackjon]

13. Banks should ONLY be banks

[onethatcares]

14. seems to me that once organized crime

faded into the travel channel, a bunch of guys in nice suits with very clean shaven faces took over our government.

They keep telling us that large scale crime can't be prosecuted due to the economy being wrecked if they do prosecute.

John Gotti and the bunch were just a little too early.

[Hydra]

16. Successful criminals run nations

Look at Putin, for instance. Organized crime is actually tied to our gov't in strange ways, or they'd all be in jail or dead right now.

We're watching a strange moment in our nation...when the masks come off.

[onethatcares]

17. it is a strange moment.

the political parties are like two crime families battling it out for turf, with minor families taking a bit here and there.

At stake is trillions of dollars, with the marks not knowing what hit them.

So far there has not been large scale blood in the streets, but you never know when that could happen.

[Hydra]

21. I keep waiting for something to happen

And all that happens is more dares from the top and less noise from the bottom. That's the strangest part...no moral courage left in the greater part of our country?

[forestpath]

20. A few years ago, Obama called the heads of both banks "savvy." Disgusting then,

disgusting now.

[libodem]

23. Are they getting a ticker tape parade?

A plaque and a medallion? Fuck them! They will skate. Again.

[MNBrewer]

24. Too big not to be dismantled and their leaders executed

[valerief]

26. And nothing will become of this. nt

[thelordofhell]

27. Preposterous

Next thing you're gonna tell me is that Oil prices are manipulated.........

[zeos3]

33. Stop that!

I just had this exchange with Squinch upthread. I want to think positive for once...


Oh crap. I just remembered this joke. I forgot the comedian who deserves the credit.

"I was going to buy a book called 'The Power of Positive Thinking' and then I thought, what the hell good would that do?"

[wildbilln864]

28. k & r! nt

[PDJane]

29. Is there anything big banks WON'T manipulate?

[DirkGently]

32. We're fully ensconced in the the New Gilded Age, murky business trusts & all.

[Enthusiast]

34. There's no denying it.

Reality.

[eppur_se_muova]

35. Gaming the rules, while producing NOTHING of concrete value ...

i.e. business as usual for the American corporatocracy.