Goldman Sachs spars with U.S. Senate over aluminum prices

WASHINGTON, Nov. 20 (UPI) -- Representatives from Goldman Sachs butted heads Thursday with members of the U.S. Senate over accusations the company improperly manipulated prices in the aluminum markets.

Christopher Wibbelman, the chief executive of a Goldman-owned aluminum warehouse in Detroit, and Jacques Gabillon, a Goldman executive, appeared at a hearing before the Senate's Permanent Subcommittee on Investigations. They were there to answer accusations the company's practices at the warehouse changed the prices of aluminum for companies across the country.

U.S. Sen. Carl Levin, D-Mich., said he wanted Wibbelman and Gabillon to "acknowledge what is obvious."

Levin, the chairman of the subcommittee, said Goldman practices "merry go-round deals" in which aluminum is moved from location to location to drive up the prices paid for storage.

Gabillon disputed Levin's accusations, saying long wait times for aluminum stockpiles had no affect on the prices for companies and consumers.

"When everything is said and done, you can say there is no correlation," Gabillon said.