More Preferential Treatment for Goldman Sachs

When Goldman Sachs became a commercial bank in 2008 (in order to save itself from insolvency), it apparently came under commercial bank regulations.  However, in 2010 Goldman bought warehouses of aluminum products as an investment even though "[u]nder US banking regulations, banks are barred from owning the physical commodity assets that they operate."

But, of course, the Federal Reserve gave Goldman 5 years of grace (until autumn 2013) while it decides if Goldman is exempt from the rules.  This is another instance of the two-tier system of justice in the US--one for banks and the other for the rest of us.

Goldman Sachs "may sell' Metro International
By Josephine Mason and David Sheppard - BDlive

NEW YORK — Goldman Sachs has explored a sale of its metals warehousing business Metro International, three sources with knowledge of the matter said, just three years after the investment bank bought the firm for $550m.

Detroit-based Metro has attracted the scrutiny of regulators since Goldman took over the warehouse company in 2010, as companies such as Coca-Cola Co and other big metal consumers have accused it of distorting aluminum supplies. Goldman has consistently said Metro had not broken any laws or rules.

The sources said the bank had been happy with Metro’s performance. It had proven to be a lucrative money-spinner as stockpiles of aluminum had mounted in its global warehouse network.

Read the article here