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US: Are Wall Street giants on verge of metal price-fixing probe?

By  |  July 22, 2013
US: Are Wall Street giants on verge of metal price-fixing probe?

The US Commodity Futures Trading Commission has sent orders to various banks on Wall Street to preserve documents concerning the lenders’ metals warehousing businesses in a sign of a possible upcoming investigation following years of complaints issued to regulators. Reports say the CFTC has received complaints claiming inflated pricing regarding their metal producing companies; the market has recently become dominated by the likes of Goldman Sachs, JP Morgan Chase and Glencore Xstrata. Unnamed sources who received the letters reported the news to media; the CFTC did not explicitly mention an investigation in its do-not-destroy notice. Reports say complaints of price-fixing have spiked in recent years as the trading system for various metals, especially aluminum, have become clogged due to an influx of the metals stockpiles in warehouses.

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