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....