'Immoral but not illegal': Metal warehousing games in the spotlight

Section:

By Josephine Mason
Reuters
Friday, November 21, 2014

NEW YORK -- Complex deals employed by Goldman Sachs' metals storage unit to build vast stockpiles and then maintain queues test the spirit of the London Metal Exchange operating code, shocking many traders and confirming others' suspicions.

But the intricate transactions that saw Metro International Trade Services shell out millions of dollars to customers to join exit queues to bolster rental income was within the rules, according to two senior warehousing executives and two veteran traders.

An explosive U.S. Senate report released on Wednesday revealed the "imaginative" methods used to lure millions of tons of aluminum into Detroit, Metro's headquarters, and then keep it there over the past four years. ...

... For the remainder of the report:

http://www.reuters.com/article/2014/11/21/us-commodities-banks-goldman-w...



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