Wall Street impacts on everyone

esh_gaJuly 23, 2013

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

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labrea_gw

It's why I keep posting the various Wall street scams & trials on here rare that the truly concerned fiscal conservatives have any comment.
The Steven Cohen trial will be an interesting one as it could pave the way for a new definition of what constitutes insider trading!

    Bookmark   July 23, 2013 at 10:13AM
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chase_gw

I'm always a bit amused how little outrage these things get from the conservatives on the forum but should a person with a manicure use food stamps and it's an outrage!

    Bookmark   July 23, 2013 at 10:17AM
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esh_ga

Exactly, chase! Billions of dollars pilfered away from honest people so that a few people can have their ultimate capitalist ways! Viva Mitt Romney!

    Bookmark   July 23, 2013 at 10:54AM
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jodik_gw

Yes, and when anyone dares to paint an honest picture of what's truly happening in the world of markets, banking and high finance, we see the backlash... it's rather amusing, and amazing, to see the rush to defend what amounts to thievery, as legal as it may have become under deregulation and whatnot.

    Bookmark   July 23, 2013 at 10:59AM
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mrskjun(9)

Wow, here comes the parade. Please, please point out one post by a conservative that defends Wall Street, just one. I'll just sit over here and give myself a manicure while I wait.

    Bookmark   July 23, 2013 at 11:07AM
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demifloyd(8)

Posted by mrskjun 9 (My Page) on
Tue, Jul 23, 13 at 11:07

Wow, here comes the parade. Please, please point out one post by a conservative that defends Wall Street, just one. I'll just sit over here and give myself a manicure while I wait.

*

Time for a pedicure?

    Bookmark   July 23, 2013 at 11:17AM
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labrea_gw

Oh I've never seen a rush to defend cut throats other than support for deregulation. Or complaints of too much regulation or defending Senators who hold up regulation that the industry being regulated asked for itself.

Your votes are your support!
I must admit K occasionally comments on the ho hum another $2 Billion fine. posts.

There were promises to gut regulation of these very businesses in the last election ...remember?

    Bookmark   July 23, 2013 at 11:19AM
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david52 Zone 6

Um, the thread on rent seeking, where some defend the absurd salaries?

At the link, a great example of the revolving door:

"When he left his role as Wall StreetâÂÂs top federal enforcer, Robert S. Khuzami began a long courtship with a whoâÂÂs who of the legal world.

The calls rolled in from financial giants like Visa and Bridgewater, and from white-shoe law firms, like WilmerHale. Some offered outsize paydays, others promised an office not only in New York but also in Washington, where his family lives. They all wanted the benefit of his experience as a terrorism prosecutor and enforcement chief at the Securities and Exchange Commission.

Six months later, lawyers briefed on the matter say, Mr. Khuzami has accepted a job that pays more than $5 million a year at Kirkland & Ellis, one of the nationâÂÂs biggest corporate law firms. In doing so, he is following the quintessential Washington script: an influential government insider becoming a paid advocate for industries he once policed.

As a partner at Kirkland, Mr. Khuzami will represent some of the same corporations that the S.E.C. oversees. Critics say this revolving door ��" common at the S.E.C. ��" undermines the agencyâÂÂs independence and links it inextricably to Wall Street. Mr. Khuzami, who spent 17 years in the government and has publicly called for lawyers to build public and private experience, called defense work essential to the justice system.

Here is a link that might be useful: link

    Bookmark   July 23, 2013 at 11:21AM
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Embothrium(USDA 8 Sunset 5 WA)

What matters is the issue and not that anyone posting here might have any particular tendencies.

    Bookmark   July 23, 2013 at 11:23AM
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demifloyd(8)

Posted by david52 z5CO (My Page) on
Tue, Jul 23, 13 at 11:21

Um, the thread on rent seeking, where some defend the absurd salaries?

*

There is no defense by me.

There is nothing to defend.

Salaries are business decisions.

Whether you think they are too high is irrelevant.

*

Geez, I don't know why people are so worried about what chemicals go into bodies when resentment, anger, and consternation about what other people legally do in a free country takes up so much space in their thoughts and so much of their time.

This post was edited by demifloyd on Tue, Jul 23, 13 at 11:37

    Bookmark   July 23, 2013 at 11:35AM
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david52 Zone 6

Thats the stuff! Its all legal, business decisions, and if you worry about the billions they just took, its a free country.

    Bookmark   July 23, 2013 at 11:43AM
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chase_gw

Because what people can do legally can cost the taxpayer and the consumer billions of dollars........

Sometimes laws need to be changed to reflect the reality of specific behaviors.

    Bookmark   July 23, 2013 at 12:21PM
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mrskjun(9)

What laws specifically would you change chase?

    Bookmark   July 23, 2013 at 12:25PM
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markjames

Even when metal prices are down they're often still expensive due to issues in the supply chain.

When metal prices go up many can't afford many of our costs of service, repairs, installations etc, (without government assistance) plus theft increases substantially.

We know many that have an incredibly lean inventory due to increasing costs, so they charge customers for hours of running for parts, ordering parts, second/third visits etc.

At times we've had tons of business due to metal theft, plus made a small fortune on salvage parts and scrap weight.

    Bookmark   July 23, 2013 at 12:25PM
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chase_gw

Laws to protect the consumer and taxpayer from what happened in real estate and banking in 2008.

Laws to curb campaign donations

........for starters

    Bookmark   July 23, 2013 at 12:29PM
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markjames

Rather than complain about things that likely won't change I try to insulate myself from harm and/or profit from the way things are, have been and will be.

    Bookmark   July 23, 2013 at 12:34PM
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labrea_gw

JPMorgan is close to settling with the Federal Energy Regulatory Commission for $410m over allegations of US power market manipulation.

According to a report in the Wall Street Journal, the US energy regulator is also forcing the bank to relinquish $200m (â¬152m, ã131m) in unpaid claims from electricity buyers in California.

However, unlike the Ferc's record fine of $453m for Barclays and four of its traders for the manipulation of the physical power markets, WSJ sources say that the JPM settlement is not expected to result in sanctions for three of the bank's unnamed energy traders.

The game of catch us if you can is & has been the rule of the day!

    Bookmark   July 23, 2013 at 12:43PM
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haydayhayday

"Yes, we long knew that our oil prices are often at the mercy of a few traders"...

You repeatedly post nonsense like this and expect someone to respond to you? You can join me and Marshall in Las Vegas and we can discuss it.

From your link:

"In the past, big banks have been accused of distorting oil and food prices after the price of related commodities hit record highs."

"Accused of". Yes, many times. We're still waiting for Dave and Marshall to show us how it's done.

Las Vegas or Bust!!!

"Um, the thread on rent seeking, where some defend the absurd salaries?'

"Absurd Salaries?" Ditto.

Better to let you believe what you WANT to believe than having to spend the rest of the day dancing around with you. I'm rather finish my manicure so I can look really clean and spiffy on the hardwood floor tonight.

Bye.

I hope you have as much fun as I do!!!

Hay

    Bookmark   July 23, 2013 at 12:43PM
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labrea_gw

How it works!

JPMorgan allegedly took advantage of a "make-whole" provision in energy markets to overcharge states for electricity, costs that were eventually absorbed by the taxpayer. First, traders would offer a low bid to deliver a minimum amount of electricity from a plant the next day, ensuring that the plant would be turned on. On the day of, traders would offer a much higher bid for the plant's electricity, virtually guaranteeing that no one would buy. The plant would thus operate well below capacity, and lose money.

It sounds like throwing money out the window. But no: The make-whole provision requires plants to be repaid if their profits don't make up for the costs of getting the plant up and running. JPMorgan allegedly took advantage of that fact to squeeze money out of the states and make a profit.

In the order against Barclays, FERC said the evidence "demonstrates that the intentional amassing of the positions and trading to influence price were not based on normal supply and demand fundamentals, but rather on the intent to effect a scheme to manipulate the physical markets in order to benefit the financial swaps," says Bloomberg Businessweek.

Have any individuals been implicated?
Yes. On top of the allegations, investigators are accusing JPMorgan of systematically covering up documents that revealed the alleged trading strategy, including one that showed Blythe Masters, the global head of commodities for JPMorgan, demanding a "rewrite" of a document that questioned whether the bank was acting legally. FERC is also claiming that Masters gave "false and misleading statements" about trading practices under oath.

Though JPMorgan is denying that she acted inappropriately, regulators will probably file a separate charge against her.

Here is a link that might be useful: The myth of manipulation

    Bookmark   July 23, 2013 at 1:28PM
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labrea_gw

Sorry for piggy backing ESH

    Bookmark   July 23, 2013 at 2:01PM
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esh_ga

Please, please point out one post by a conservative that defends Wall Street, just one.

Maybe not, but never see any criticism either. When it comes to legal profits, there is never a harsh word for those that "earn" it.

Perhaps some of these types of profits should not be legal ... that is the point.

    Bookmark   July 23, 2013 at 2:26PM
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labrea_gw

The Great words of that Great Conservative Spencer Bachus. Regulators are there only to serve the banks!
Here's an old article on sewers in Birmingham Alabama & how to run the cost up the right way the JPP MORGAN way !

Here is a link that might be useful: Old News How to cost a taxpayer

    Bookmark   July 23, 2013 at 5:42PM
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PRO
Brushworks Spectacular Finishes(5)

Laws to protect the consumer and taxpayer from what happened in real estate and banking in 2008.

Laws to curb campaign donations

........for starters

Unfortunately, the consumer affairs and real estate regulators are in bed with Washington, DC politics. They are useless to us. Senseless people applaud those offices without realizing they are the enemy.

As for campaign donations, nobody in Washington DC is interested in changing the influence of big money over the people's vote. Oh, don't get me wrong, they will lie to us during campaigns, and then forget it once elected. Proof is in Washington DC .

Any other ideas that might work?

    Bookmark   July 24, 2013 at 11:14AM
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