That is the finding of a US Senate report into the role of banks in physical commodities, which described what the New York Times in July 2013 termed as “merry-go-round” deals in which aluminum was loaded out of one Metro warehouse and loaded into another.
The decision to pay the incentives was approved by the board of Metro, which was composed exclusively of employees of Goldman Sachs, the owner of Metro, the report noted.
Over 625,000 tonnes of aluminium was loaded out of a Metro warehouse in Detroit and reloaded into another Metro facility in Detroit between February 2010 and January 2014, the Senate report noted.
“In the end, while the truck movements created a false impression that metal was actually leaving the Metro warehouses, in fact, almost all of the metal was simply being moved around the warehouse system in Detroit,” the report said.
Metro, which has been owned by...