Goldman Sachs was the subject of a recent piece in the New York Times detailing how the investment bank uses warehouses it owns to store aluminium for clients, augmenting revenue streams from its commodities operations by charging rent to store it.
The piece alleges that the bank has intentionally stretched out the time it takes for clients to get their aluminium in order to charge more rent.
Goldman has, of course, defended its actions.
Today, though, Bloomberg’s Michael J. Moore reports that Goldman has come up with a solution:
Goldman Sachs Group Inc. said it’s offering end-user clients a faster way to get metal that’s in warehouses as the bank laid out proposals to address concerns about limited supply.
The bank is contacting clients with an offer to swap their metal stuck in queues for immediately available aluminium, the New York-based firm said in a statement. Goldman Sachs also said consumers should be prioritised over other clients in getting aluminium out of the warehouses and called for more transparency in the London Metal Exchange system.
Basically, it sounds like instead of telling clients that they have to wait for delivery of their aluminium because operators are having trouble finding specific orders in the stacks and stacks of metal contained in the warehouses, they’re just going to start filling delivery requests with the stuff up front.