No clear rationale for banks to own warehouses, academic says

There is no clear rationale for a financial holding company like Goldman Sachs to own a warehousing company, an academic told a US Senate hearing.

“The reality is, why would a financial institution try to become a warehousing company? Until very recently it wasn’t a hot business for banks to get into,” Saule Omarova, a law processor at Cornell University said. Referring to a question on Goldman Sachs and its ownership of Metro International Trade Services, Omarova said that the rationale was most likely for banks to extract rental income, raise commodity prices and play a series of “complex financial games”...

Published

Andrea Hotter

November 21, 2014

16:58 GMT

New York