Goldman Sachs announces sale of controversial metals unit
New York-based Goldman Sachs selling Metro International Trade Services to Switzerland-based Reuben Brothers
NEW YORK—The Goldman Sachs Group, Inc. says it has sold Metro International Trade Services LLC, a metals storage business that drew lawsuits and congressional scrutiny.
The buyer is a unit of Switzerland-based investment firm Reuben Brothers.
Goldman Sachs did not say what the deal’s value was.
Reuben Brothers did not immediately respond to emails seeking details.
Wall Street banks have faced scrutiny for their involvement in businesses that store and transport commodities.
A United States Senate report in November found that Goldman Sachs used its stockpile of aluminum, held in warehouses near Detroit, to cause delivery delays that created shortages and inflated the metal’s price.
The report said that raised prices for beverage makers and consumers.
New York-based Goldman Sachs has said that there has been no aluminum shortage and prices have fallen substantially since 2008.