London Metal Exchange and Goldman Sachs being sued in U.S. courts allegedly anti-competitive and monopolistic behavior of aluminum storage.
Metal Exchange will seek class-action lawsuit, which management considers useless, the owner of the London Metal Exchange, the Hong Kong Exchanges and Clearing Limited, Sunday night, said in a statement.
Wall Street banks are facing increasing their participation in consideration of enterprise, storage and transport of commodities such as oil and aluminum.
London Metal Exchange (LME) and Goldman Sachs Group, was named as co-defendants in the lawsuit, alleging "anti-competitive and monopolistic behavior warehousing market price of aluminum."
The lawsuit was filed by the lead plaintiff advanced extrusion company, aluminum pipes and beams manufacturer in the August 1 United States District Court Eastern District of Michigan.
More and more buyers are complaining about metal prices due to long waiting times in the warehouse.
To solve these problems, Goldman Sachs said last week that it was taking measures to increase the aluminum immediately available to customers in its metro metals warehousing business, international trade services, pursuant to the LME.
The bank pointed out last week, "the overall delivered price of aluminum fell nearly 40% since its 2006 peak level."
Hong Kong Exchanges and operation of the southern Chinese city Stock Exchange, bought last year: LME, approval and authorization of the network throughout the U.S., Europe and Asia 40 cities in more than 700 metal storage facilities.
Last month, a U.S. Senate committee held a hearing on whether banks should be allowed to control the power of the factories, warehouses and refineries.
JPMorgan Chase & Co. said last week that the new regulations could be a factor behind the decision to consider selling some of the physical commodities business, including metals and energy. It has agreed to pay 410 million yuan to solve accused U.S. regulators that it manipulated electricity prices.
 



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