U.S. Markets open in 3 hrs 2 mins

Why Goldman Sachs Wants to Purchase Chinese Metals Warehouses


Goldman Sachs is poised to grab valuable warehousing operations in China in hopes to ramp up its market share in the prized metals storage business there. The company known for investment banking is looking to gain a foothold in the multi-billion dollar business and pivot its presence from the United States to the world's largest consumer of base metals, according to a Reuters report. The reported exploration comes a year after a report exposed that Goldman was profiting off a merry-go-round process as a warehouse run by one of its subsidiaries would physically move metal stocks around so as to lengthen the storage time. It caught the eyes of legislators in Washington, who are trying to crack down on the loophole. INTL FCStone metals analyst Edward Meir discusses with TheStreet's Joe Deaux.