Citigroup is one of the world’s largest metal speculators. Hello Fed, FDIC, am I the only one who thinks banks should be banks, not hedge funds?
by Mike ‘Mish’ Shedlock
Mish Talk
Citi’s Mega Metals Trade Shows Global Markets Turning to Glut
Bloomberg reports Citi’s Mega Metals Trade Shows Global Markets Turning to Glut
Citigroup Inc. has been buying large volumes of physical aluminum and zinc on the London Metal Exchange, in a bold metal-financing trade that’s made it one of the biggest players in the market in recent months.
In the last few months, Citi requested delivery of about 100,000 tons of aluminum and 40,000 tons of zinc — worth over $300 million, according to people familiar with the matter. The purchases are for Citi’s own trading book and are part of a metal financing play, said the people, who asked not to be identified discussing private information.