Press "Enter" to skip to content

House Of Cards in Commodities, From Beer Cans to Silver Bars

[heading]House Of Cards in Commodities, From Beer Drinkers to Silver Bars[/heading]

“Many more of our clients today have commodity exposure than they ever had before, or they ever realized they had. It’s important to our business.” –  Gary Cohn, Goldman president and chief operating officer. “

The gaming of the aluminum market has cost aluminum purchasers an extra $3 billion, an expense that has been passed onto beer and soda drinkers.

For that reason, MillerCoors will take its turn at Goldman Sachs and JPMorgan on Tuesday in a long line of disgruntled subjects of banking oligarchy.r-BEER-large570According to the major US brewery, the Federal Reserve ought to toughen oversight of big banks such as Goldman Sachs and JP Morgan due to their negative influence over commodities like aluminum for beer cans.  This disgruntlement over Goldman Sachs’ and JP Morgans’ treatment of can drinkers comes on the heels of alleged manipulation across commodity markets by the two banks.

The Coors Light and Miller High Life producers will argue to the Senate Banking Committee that financial groups, through their ownership of warehouses, are distorting the aluminum market by controlling how much aluminum flows out of their storage facilities.

Simultaneously, the Federal Reserve is reconsidering if banks should be able to have anything to do with commodities.

goldman-sachs-hq-is-worth-176-million-less-now-than-it-was-last-year“The Federal Reserve regularly monitors the commodity activities of supervised firms and is reviewing the 2003 determination that certain commodity activities are complementary to financial activities and thus permissible for bank holding companies,” stated the Federal Reserve.

Bank revenues from commodities trading have soared since 2003, fueled by increasing global demand from emerging markets like China and India, requiring more oil, metal and raw materials.

Ten keystone global banks have generated nearly $50 billion off their commodities business over the past five years, according to Coalition, a financial data provider.

JPMorgan, Goldman and Morgan Stanley last year were the top three global banks in commodities revenue, Coalition said. Ten major banks generated some $6 billion in commodities revenue in 2012.

These banks’ involvement in the commodities trade has met criticism from individuals who believe that some banks are manipulating markets so as to boost their own profit.

Senator Sherrod Brown (D-Ohio) will convene a Senate Banking Committee hearing on Tuesday during which MillerCoors and experts critical of banks’ involvement in physical commodities activities and infrastructure assets such as storage facilities and pipelines are likely to heavily criticize banks like Goldman and JPMorgan, which both own large warehouses that store aluminum and trade derivatives contracts reflecting commodity prices.
jp-morgan-beats-expectationsMillerCoors looks to shed light on bank ownership of metals’ warehouses, where companies like MillersCoors store aluminum for beer cans. In recent years, industrial companies have complained about long waits to move their aluminum from warehouses to plants and to settle contracts with purchasers of the metals. These waits have led to increased rental income for the banks that own the warehouses.

Bart Chilton of the Commodity Future Trading Commission said that he was”becoming increasingly concerned that prices are being impacted by warehousing bottlenecks.”

“We need to work to ensure that markets are fair and that prices are based on supply and demand fundamentals,” Chilton said.

The fight over aluminum between industrial companies and Wall Street transpires alongside increasing Fed worries about banks’ storage and transportation of physical commodities. The Fed reserves broad authority over banking activities, and researchers from the Federal Reserve Bank of New York have speculating that the Fed is looking to crackdown.

Not only is the Fed reviewing its 2003 decision, but it is also investigating whether to allow Goldman and Morgan to continue operating key commodities businesses involving storage units, tankers, pipelines and other activities. The two banks received an exemption in 2008 as they converted bank holding companies during the financial crisis. This exemption expires in autumn.




  1. best web hosting August 10, 2020

    Wonderful goods from you, man. I’ve keep in mind your
    stuff previous to and you’re just extremely excellent.
    I really like what you’ve got here, really like what you
    are stating and the best way during which you assert it.

    You’re making it entertaining and you still care for to
    keep it sensible. I can not wait to read far more from you.
    That is really a tremendous website.

  2. web hosting company August 10, 2020

    Since the admin of this site is working, no uncertainty very
    shortly it will be renowned, due to its quality contents.

  3. hosting services August 13, 2020

    Its not my first time to pay a visit this site, i am browsing this web page dailly and take good facts from here daily.

  4. web hosting company August 14, 2020

    At this moment I am going to do my breakfast, once having my breakfast coming over
    again to read other news.

  5. cheap flights August 24, 2020

    Great delivery. Great arguments. Keep up the good effort.

  6. cheap flights August 24, 2020

    Hi there, I discovered your website by way of Google while searching for a comparable topic, your website came up, it appears good.
    I have bookmarked it in my google bookmarks.
    Hello there, just changed into aware of your blog through Google, and located that it is truly informative.

    I am going to be careful for brussels. I’ll appreciate in case you proceed this in future.
    Numerous other folks will be benefited out of your writing.

  7. cheap flights August 24, 2020

    It’s enormous that you are getting ideas from this piece of writing as well as from our discussion made here.
    y2yxvvfw cheap flights

  8. cheap flights August 25, 2020

    Write more, thats all I have to say. Literally, it seems
    as though you relied on the video to make your point.
    You definitely know what youre talking about, why throw away your intelligence on just posting videos to your site when you could be giving us something informative to read?
    cheap flights 3aN8IMa

  9. cheap flights August 25, 2020

    I used to be recommended this website through my cousin. I’m not positive
    whether this submit is written through him as no one else know such
    specific approximately my trouble. You’re wonderful! Thank
    you! 2CSYEon cheap flights

  10. cheap flights August 26, 2020

    This blog was… how do I say it? Relevant!! Finally I have
    found something which helped me. Cheers!

  11. black mass August 28, 2020

    For latest information you have to go to see world wide web
    and on world-wide-web I found this web site as a best web
    page for latest updates.

  12. black mass August 30, 2020

    Thankfulness to my father who shared with me about this webpage, this webpage
    is genuinely remarkable.

  13. website hosting companies August 31, 2020

    There’s certainly a lot to learn about this subject. I really like all the points you made.

  14. web hosting service September 5, 2020

    This article is genuinely a fastidious one it helps new internet users, who are wishing for blogging.

  15. best hosting September 5, 2020

    After looking into a handful of the articles on your website, I honestly
    like your technique of writing a blog. I saved as a favorite it to my bookmark site list
    and will be checking back soon. Take a look
    at my website as well and tell me how you feel.

Leave a Reply

Your email address will not be published.

Mission News Theme by Compete Themes.
Precious Metals Data, Currency Data , Precious Metals Automated Product Pricing Powered by nFusion Solutions