Wall Street impacts on everyone
Not that anyone really thought the rest of us were immune from their shenanigans after the fiasco of 2008, but here is further reason to see how their personal profit making affects so much of our lives.
Tim Weiner, MillerCoors global risk manager of commodities and metals, said in prepared remarks that rules exploited by banks and other warehouse owners have cost his company tens of millions of dollars in recent years as a result of an "economic anomaly in the aluminum and other base metal markets."
The alleged gaming has cost aluminum purchasers overall an extra $3 billion, an expense that likely has been passed on to beer and soda drinkers.
The beverage company's statement comes as regulators at the Fed and the Commodity Futures Trading Commission weigh possible action against the banks for their commodities activities. The Fed is revisiting a landmark 2003 decision that for the first time allowed banks to enter the physical commodities business, the central bank said Friday. The CFTC is probing the metals warehousing business, the source of MillerCoors's complaints, people familiar with the matter said.
The inquiries could lead to full-blown investigations by the CFTC or a Fed ban on certain activities by banks in markets for commodities such as aluminum and oil, curtailing a key source of profit.
Yes, we long knew that our oil prices are often at the mercy of a few traders that are just trying to feed their own family (feed them gourmet meals!). It's about time some investigation into this was made. I know that MillerCoors is only speaking up for their bottom line, but it has to start some where. No one was going to listen to the end user, that's for sure!
Here is a link that might be useful: source of course