Goldman made about $400m betting on food prices as millions starve
Goldman Sachs made more than a quarter of a billion pounds last year
by speculating on food staples, reigniting the controversy over banks
profiting from the global food crisis.
Less than a week after the Bank of England Governor, Sir Mervyn King,
slapped Goldman Sachs on the wrist for attempting to save its UK
employees millions of pounds in tax by delaying bonus payments, the
investment bank faces fresh accusations that it is contributing to
rising food prices.
Goldman made about $400m (£251m) in 2012 from
investing its clients' money in a range of "soft commodities", from
wheat and maize to coffee and sugar, according to an analysis for The
Independent by the World Development Movement (WDM).
This
contributed to the 68 per cent jump in profits for 2012 Goldman
announced last week, allowing it to push up the average pay and bonus
package of its bankers to £250,000.
The extent of Goldman's food
speculation can be revealed after the UN warned that the world could
face a major hunger crisis in 2013, after failed harvests in the US and
Ukraine. Food prices surged last summer, with cereal prices hitting a
record high in September.
Christine Haigh of the WDM said: "While
nearly a billion people go hungry, Goldman Sachs bankers are feeding
their own bonuses by betting on the price of food.
independent.co.uk
