Goldman, Morgan Stanley And JP Morgan Named In Commodity Manipulation Investigation

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http://www.forbes.com/sites/maggiemcgrath/2014/11/19/goldman-morgan-stanley-and-jp-morgan-named-in-commodity-manipulation-investigation/
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A two-year investigation conducted by the Senate Permanent Subcommittee on Investigations has accused Goldman Sachs, Morgan Stanley MS -0.25% and JP Morgan of manipulating commodity prices. In a nearly-400 page report released Wednesday evening, the subcommittee says that these banks have become “heavily involved with” the commodities markets and increasing risks to financial stability, industry and consumers.

The results of the investigation contain new details about Goldman, JP Morgan and Morgan Stanley’s management of aluminum warehouses, details that the Senate committee says raise new questions about whether the banks harmed businesses and consumers and manipulated the markets.

The subcommittee will hold a two-day hearing this week to hear testimonies from bank officials as well as experts and regulators.

“Wall Street’s massive involvement in physical commodities puts our economy, our manufacturers and the integrity of our markets at risk,” senator Carl Levin (D-Mich.), the subcommittee’s chairman, said in a statement Wednesday afternoon. “It’s time to restore the separation between banking and commerce and to prevent Wall Street from using nonpublic information to profit at the expense of industry and consumers.”