July 24, 2013
Harold Meyerson has a good column noting Goldman Sachs role in manipulating prices in the aluminum market and arguing for a new Glass-Steagall Act prohibiting banks from getting into other lines of business. The points are well taken but the description of Goldman’s ability to manipulate prices in the aluminum market go beyond just bank abuses. The allegations against Goldman Sachs raise basic anti-trust issues.
If any firm is able to manipulate prices in a major market in the way Goldman appears to be doing, then the firm clearly has too much control over the market. This should prompt action on anti-trust grounds regardless of whether or not the firm is in the financial sector, as is obviously the case with Goldman. In other words, if the description of Goldman’s conduct in the aluminum market is accurate, not only does it imply the need for new Glass-Steagall legislation, it implies the need for an anti-trust division at the Justice Department that works for its paychecks.
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