Big Banks Busted Manipulating Aluminum and Copper Prices

Break Them Up … Or They’ll Take Over More and More of the Economy, Making Us Poorer and Poorer

We’ve previously notedthat the big banks have massively manipulated commodity prices … with the help of government agencies.

And that the big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.

Four congressmen warned in a letter to the Federal Reserve:

Goldman Sachs, JP Morgan, and Morgan Stanley are no longer just banks – they have effectively become oil companies, port and airport operators, commodities dealers, and electric utilities as well. This is causing unforeseen problems for the industrial sector of the economy. For example, Coca Cola has filed a complaint with the London Metal Exchange that Goldman Sachs was hoarding aluminum. JP Morgan is currently being probed by regulators for manipulating power prices in California, where the “bank” was marketing electricity from power plants it controlled. We don’t know what other price manipulation could be occurring due to potential informational advantages accruing to derivatives dealers who also market and sell commodities. The long shadow of Enron could loom in these activities.


These financial services companies have become global merchants that seek to extract rent from any commercial or financial business activity within their reach.  They have used legal authority in Graham-Leach-Bliley to subvert the “foundational principle of separation of banking from commerce”. This shift has many consequences for our economy, and for bank regulators. We wonder how the Federal Reserve is responding to this shift.

It seems like there is a significant macro-economic risk in having a massive entity like, say JP Morgan, both issuing credit cards and mortgages, managing municipal bond offerings, selling gasoline and electric power, running large oil tankers, trading derivatives, and owning and operating airports, in multiple countries. Such a dramatic intertwining of the industrial economy and supply chain with the financial system creates systemic risk, since there is effectively no regulatory entity that can oversee what is happening within these sprawling global entities.

We’ve been proven right.

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.

Break up the big banks, or they will continue to take over and manipulate more and more of the economy … increasing their profits while making everyone else poorer.

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  • bruja

    Look up “SERCO”, the corp behind the private companies like parking ticket agencies hired by big cities. Their contractors are also hired by the FAA (did you know that right before 9/11, one of thier contractors lost a bid – how strange – retaliation for losing the East Coast contract??).
    The dept of defense also uses thier contractors – and the toll raods and bridgebuilders, railroads too (dept of transportation).
    Weird – SERCO is a British company – and shares the same address as Mortgage Electronic Registration Systems in Reston, VA (MERSCORP).
    Did America ever really break away from Britain, or was it just a hoax to make Americans believe that a free country was born? Laws are made but not upheld, or are twisted – crime is instigated because a prisioner is a security (SERCO has those contracts, too).
    I am really getting pissed. I went to Aldi’s a couple of weeks ago and bought some Kirkwood chicken. Usually has 8 to 9 pieces inside the box for $3.49. I discovered that the price had gone up to $4.29. Oh well, no biggie I said. But, when I got home, there were 7 pieces in the box. So I thought, must be a bad box.
    Now the other day, I bought another box, and there was 7 pieces in it. The box size had not changed, just the price and the amount of food in the box. I soon realized that other food prices had also been raised, while the the amount of food in the packages (pieces, or ounces, etc) had become less. This wasn’t a case of a random “bad box”. This is sytematic, and not just Aldi’s, but in stores like Jewel, Sullivan’s, Piggly Wiggly, etc.
    What the hell. I got kids to feed. Illinois has the highest state tax in the nation. This is getting to be too much – especially since even the farmers are being forced out of the picture.
    And, is it my imagination, or is everyone starting to get upper respiratory infections due to mold, causing hypothyroisism?? Something else is going on here – besides the frauds, I mean.

  • bruja

    Hey, was just wondering – I saw an old wall poster in a garage with the oil company “BP” on it, FROM 1921 !!! It says at the bottom “British Petrol Corp. authorized distributor of the Anglo-Persian Oil Company”. It has a picture of a “British Triump” (a kind of race car that looks kind of like a motorcycle) and mentions it reached a speed of 197 mph (fastest speed ever achieved by a human being) using BP energol gasoline and Castrol oil.
    And I thought BP was just a new company who bought out Amoco. OMG I looked it up (i’m so new), its the same company.
    Also, that company SERCO provides transport for all those oild companies! SERCO is also the company which processes medicare and medicais insurance contracts.
    In fact, it looks like SERCO is used for everything from toothbrushes to household cleaners, CIA contracts, prison contracts, 60% of the electricity grids in the U.S., SERCO provides almost all of the U.S. government contractors! Does this mean that MERS is a government contractor (same address as SERCO in the U.S.)?? would explain a lot
    SERCO + BP oil spill + environmental problems + human sickness + homeowning to renting +spying on citizens +taking over other countries’ oil = MONEY and POWER, is this one reason why the U>S/Britain want to attack Iran (like Iraq)? Get control of the oil and land, make people sick and poor so we can’t fight
    SERCO and Fed Reserve sister corps? U.S. a British subsidiary??
    Too complicated for me, this all starting to look like some sci-fi movie

    All we need is Godzilla and a few Klingons.

  • Renate

    Love those Republicans and their deregulation.

    • H.P. Loathecraft

      You mean like Bill Clinton?