Warehouses full of aluminum are moved around and around within the city of Detroit several times a day. And they belong to Goldman Sachs.
You think you’ve heard all there is to know about big banks manipulating consumers and markets to make a buck? You might be surprised.
Big banks have their hands in commodity markets, but not just in futures.
Goldman Sachs and Morgan Stanley, among other big banks, have been buying up companies that store and deliver commodities. The banks turn a massive profit, and it costs consumers billions of dollars.
Everyday in Detroit, tons of aluminum is moved from one warehouse, to another–all to exploit pricing regulations that allow banks to raise the cost of aluminum by tenths of a penny, adding up to billions of dollars.
Saule Omarova, a professor of law at the University of North Carolina, joins The Takeaway to discuss how this works and what kind of loopholes these banks are exploiting.  
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