LORD COPPER: Today’s newspapers are tomorrow’s fish-and-chip paper

With the topic of LME aluminium warehousing splashed all over the news in recent days, there are those who will be grateful to be reminded that today’s newspapers are tomorrow’s fish-and-chip paper.

Predictably in the firing line are everybody’s bogeymen – Goldman Sachs, along with JP Morgan, Glencore, Morgan Stanley and the London Metal Exchange, among others. I do actually believe that it would be a good thing to take a look at the LME warehousing rules, and to pay particular attention to what sort of institution should be allowed to own storage facilities. I still do not really think the blend of warehouseman, bank and trader in one entity is necessarily the right solution. However, some of the rhetoric seems a little excessive. Apparently, the LME rules are “arcane and hard to understand”. Really? I know there are some long words, but they are not really difficult ones. The Exchange is seemingly “a co-operative of vested interests, setting rules that best suit themselves”. Coming from a politician, that is a pretty harsh comment....

Published

Lord Copper

July 29, 2013

17:05 GMT

London