End of an era at Goldman

Goldman Sachs Blink

Goldman Sachs closed a nearly 35-year era of investments in commodity assets such as power plants and refineries with the sale of a Colombian coal mine.

Bloomberg News reports that the disposal is the latest sign of how Wall Street banks are responding to pressure from U.S. regulators and disappointing returns as raw materials prices plunged.

Goldman has invested in physical commodity assets since 1981, when it bought what was then a small trading house called J. Aron. Over the years, the company has owned oil refineries in Rotterdam, power plants in Virginia and Colorado, and warehouses to store aluminum and copper around the world.

The U.S. Federal Reserve has been working on a rule to rein in Wall Street ownership of commodity assets. Federal Reserve Governor Daniel Tarullo, who is spearheading the Fed’s regulatory efforts, questioned in March whether banks should be allowed to own such properties.

To access the complete Bloomberg News article hit the link below:

Goldman Closes an Era in Commodities With Coal Mine Disposal

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