The Commodity Futures Trading Commission has begun an examination of warehouse operations controlled by Goldman Sachs, Glencore Xstrata, the Noble Group and others, as the commission scrutinizes a tactic that has inflated the price of aluminum, Gretchen Morgenson and David Kocieniewski report in The New York Times. The operations were the subject of a Times article over the weekend.

The trading commission has told the firms to retain internal documents and e-mails related to the business, people who reviewed the requests and spoke on the condition of anonymity told The Times. On Tuesday, a Senate Banking subcommittee holds a hearing on how Wall Street has extended its reach beyond banking and into global commodities markets. "The overarching question is whether banks should control the storage and shipment of commodities, and whether such activities could pose a risk to the nation’s financial system," Ms. Morgenson and Mr. Kocieniewski write.
www.nytimes.com/2013/07/23/business/inquiry-possib…;_r=0

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