Goldman, Glencore Found in ‘Merry-Go-Round’ Aluminum Trades
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Glencore Plc and hedge fund Red Kite were among firms joining in “merry-go-round” deals that led to aluminum-warehouse bottlenecks and drove up storage fees at sites owned by Goldman Sachs Group Inc., a U.S. Senate panel found.
Goldman’s Metro International Trade Services LLC warehousing unit paid “millions of dollars in incentives” for firms to move stored metal among its sheds, leading to longer queues for other users waiting to remove metal and boosting rental fees, according to a report released today by the Permanent Subcommittee on Investigations. The report also found that confidential Metro information was made available to Goldman employees active in trading commodities.