08.08.2013 - Why are JPMorgan and Goldman being accused of price manipulation?
Regulators have had the financial industry under a microscope since the late-2000s crisis, and every time they turn over a stone they seem to find something to litigate or regulate. Most recently, mega-banks like Goldman Sachs and JP Morgan have come under fire for allegedly shady business practices regarding their ownership of commodities storage facilities. The New York Times called attention to some suspicious behavior from Goldman Sachs in July. The bank was accused of using a fleet of trucks to move 1,500-pound bars of aluminum between warehouses, thereby lengthening the storage time of the commodity and increasing the prices paid by manufacturers and consumers across the country, thus adding millions of dollars per year to the company’s coffers...............................................Full Article: Source
Print