[Senate Hearing 113-501, Volume 2]
[From the U.S. Government Publishing Office]
S. Hrg. 113-501
WALL STREET BANK INVOLVEMENT
WITH PHYSICAL COMMODITIES
=======================================================================
HEARINGS
before the
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
of the
COMMITTEE ON
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
VOLUME 2 OF 2
__________
NOVEMBER 20 and 21, 2014
__________
Available via the World Wide Web: http://www.fdsys.gov
Printed for the use of the
Committee on Homeland Security and Governmental Affairs
VOLUME 2 OF 2
S. Hrg. 113-501
WALL STREET BANK INVOLVEMENT
WITH PHYSICAL COMMODITIES
=======================================================================
HEARINGS
before the
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
of the
COMMITTEE ON
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
----------
VOLUME 2 OF 2
----------
NOVEMBER 20 and 21, 2014
----------
Available via the World Wide Web: http://www.fdsys.gov
Printed for the use of the
Committee on Homeland Security and Governmental Affairs
U.S. GOVERNMENT PRINTING OFFICE
91-653 PDF WASHINGTON : 2014
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COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri ROB PORTMAN, Ohio
JON TESTER, Montana RAND PAUL, Kentucky
MARK BEGICH, Alaska MICHAEL B. ENZI, Wyoming
TAMMY BALDWIN, Wisconsin KELLY AYOTTE, New Hampshire
HEIDI HEITKAMP, North Dakota
Gabrielle A. Batkin, Staff Director
Keith B. Ashdown, Minority Staff Director
Laura W. Kilbride, Chief Clerk
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
CARL LEVIN, Michigan, Chairman
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri ROB PORTMAN, Ohio
JON TESTER, Montana RAND PAUL, Kentucky
TAMMY BALDWIN, Wisconsin KELLY AYOTTE, New Hampshire
HEIDI HEITKAMP, North Dakota
Elise J. Bean, Staff Director and Chief Counsel
Tyler Gellash, Senior Counsel
Henry J. Kerner, Minority Staff Director and Chief Counsel
Michael Lueptow, Counsel to the Minority
Mary D. Robertson, Chief Clerk
Patricia R. Hogan, Publications Clerk
C O N T E N T S
------
Opening statements:
Page
Senator Levin................................................ 1, 95
Senator McCain............................................... 7, 98
Senator Portman.............................................. 23
Senator Baldwin.............................................. 33
WITNESSES
Thursday, November 20, 2014
Christopher Wibbelman, President and Chief Executive Officer,
Metro International Trade Services LLC, Allen Park, Michigan... 10
Jacques Gabillon, Head, Global Commodities Principal Investment
Group, Goldman Sachs and Co., London, England.................. 11
Jorge Vazquez, Founder and Managing Director, Harbor Aluminum
Intelligence LLC, Austin, Texas................................ 56
Nick Madden, Senior Vice President and Chief Supply Chain
Officer, Novelis Inc., Atlanta, Georgia........................ 57
Simon Greenshields, Global Co-Head of Commodities, Morgan
Stanley, New York, New York.................................... 68
Gregory A. Agran, Co-Head, Global Commidities Group, Goldman
Sachs and Co., New York, New York.............................. 69
John Anderson, Co-Head, Global Commodities Group, JPMorgan Chase
and Co., New York, New York.................................... 71
Friday, November 21, 2014
Saule T. Omarova, Professor of Law, Cornell University, Ithaca,
New York....................................................... 99
Chiara Trabucchi, Principal, Industrial Economics, Incorporated,
Cambridge, Massachusetts....................................... 101
Hon. Daniel K. Tarullo, Member, Board of Governors of the Federal
Reserve System, Washington, DC................................. 119
Larry D. Gasteiger, Acting Director, Office of Enforcement,
Federal Energy Regulatory Commission, Washington, DC........... 120
Alphabetical List of Witnesses
Agran, Gregory A.:
Testimony.................................................... 69
Prepared statement........................................... 274
Anderson, John:
Testimony.................................................... 71
Prepared statement........................................... 277
Gabillon, Jacques:
Testimony.................................................... 11
Prepared statement with an attached chart.................... 142
Gasteiger, Larry D.:
Testimony.................................................... 120
Prepared statement........................................... 325
Greenshields, Simon:
Testimony.................................................... 68
Prepared statement........................................... 268
Madden, Nick:
Testimony.................................................... 57
Prepared statement........................................... 164
Omarova, Saule T.:
Testimony.................................................... 99
Prepared statement........................................... 282
Tarullo, Hon. Daniel K.:
Testimony.................................................... 119
Prepared statement........................................... 313
Trabucchi, Chiara:
Testimony.................................................... 101
Prepared statement........................................... 302
Vazquez, Jorge:
Testimony.................................................... 56
Prepared statement........................................... 148
Wibbelman, Christopher:
Testimony.................................................... 10
Prepared statement........................................... 139
APPENDIX
Report by the Permanent Subcommittee on Investigations Majority
and Minority Staff entitled ``Wall Street Bank Involvement With
Physical Commodities,'' November 20 and 21, 2014............... 341
EXHIBIT LIST
VOLUME 1
1. a. GGlobal LME Aluminum Stocks, chart prepared by the
Permanent Subcommittee on Investigations....................... 816
b. GMetro Freight Incentives, chart prepared by Goldman
Sachs. [Source: Goldman Sachs Counsel letter to the Permanent
Subcommittee on Investigations, GSPSICOMMODS00046232, included
in Exhibit 39]................................................. 817
c. GAluminum Tonnage Shipped (Metro Warehouse (Detroit) to
Metro Warehouse (Detroit)), chart prepared by Goldman Sachs.
[Source: Goldman Sachs Counsel letter to the Permanent
Subcommittee on Investigations, PSI-GoldmanSachs-20-000002].... 818
d. GGoldman Employees Who Served As Metro Board Members, 2009
to 2014, chart prepared by the Permanent Subcommittee on
Investigations................................................. 819
e. GAluminum Merry Go Round Transactions, chart prepared by
the Permanent Subcommittee on Investigations................... 820
f. GDetroit Queue and Platts MW Aluminum Premium, chart
prepared by the Permanent Subcommittee on Investigations....... 821
g. GWentworth Ownership Structure, chart prepared by the
Permanent Subcommittee on Investigations....................... 822
h. GOverview of North America Gas, Power and PI Assets, as of
03/31/2011, chart prepared by JPMorgan. [FRB-PSI-623097,
included in Exhibit 58]........................................ 823
i. GJPMorgan internal email, dated October 2010, re: Please
sir! mor BCR!!!!............................................... 824
j. GExcerpts from 2013 CNR Financial Statement, prepared by
CNR. [GSPSICOMMODS00046374, included in Exhibit 17]............ 825
k. GQueue Length, chart prepared by the Permanent
Subcommittee on Investigations................................. 826
Documents Related to Goldman Sachs/General:
2. GExcerpts of Goldman Sachs responses to questions from the
Federal Reserve on 4(o) Commodities Activities, dated May 26,
2011, re: 1997 v. 2010 physical commodity activities. [FRB-PSI-
200600-602, 608-610]........................................... 827
3. GExcerpts from Goldman Sachs Presentation, Federal Reserve
Bank of New York Discovery Review: Global Commodities - US
Natural Gas & Power, dated March 2010, (Financial vs. Physical
Trades FY 2009). [FRB-PSI-400006, 008]......................... 833
4. GGoldman Sachs Presentation, Global Commodities, Presentation
to the Board of Directors of The Goldman Sachs Group, Inc.,
dated October 2011, including Metro, CNR and Cogentrix
highlights. [FRB-PSI-700011-030]............................... 835
5. GExcerpts from Goldman Sachs Memorandum, dated July 2012, re:
Firmwide Client and Business Standards Committee Meeting, (...
Merchant Banking include CNR, Metro and Vale. ... *** ...
Nufcor - treated as part of firm's own activities). [FRB-PSI-
200984, 994-996, 998-1001, 1004, 1006-007]..................... 855
6. GGoldman Sachs Memorandum to the Federal Reserve, dated July
2013, re: commodity-related activities, including
environmental/catastrophic risk. [FRB-PSI-201245-268].......... 866
7. GGoldman Sachs Presentation, Global Commodities & Global
Special Situations Group, Presentation to the Board of
Directors of The Goldman Sachs Group, Inc., dated September
2013, including Metro and CNR (short coal hedge) highlights.
[FRB-PSI-400077-098]........................................... 889
8. GConsolidated Holding Company Report of Equity Investments in
Nonfinancial Companies - FR Y-12, dated June 30, 2014, prepared
by The Goldman Sachs Group, regarding its merchant banking
investments. [FRB-PSI-800013-016].............................. 910
Documents Related to Goldman Sachs Involvement with Uranium:
9. GGoldman Sachs New Product Memorandum, dated December 2008,
re: Uranium Trading. [FRB-PSI-400039-052]...................... 914
10. GGoldman Sachs Physical Commodity Review Committee: Meeting
Minutes, dated May 2013, re: enriched uranium (UF6). [FRB-PSI-
400053-055].................................................... 928
11. GNufcor - Structure Chart, prepared by Goldman Sachs.
[GSPSICOM-MODS00046240]........................................ 931
12. GExcerpts from Goldman Sachs counsel letter to the
Subcommittee, dated October 2014, re: Nufcor, attached chart,
Nufcor Uranium Utility Supply Contracts at the time of the
Nufcor Acquisition (June 30, 2009)). [PSI-GoldmanSachs-21-
000001-010 and GSPSICOMMODS00046532-533]....................... 932
Documents Related to Goldman Sachs Involvement with Coal:
13. GCNR Structure Chart, prepared by Goldman Sachs.
[GSPSICOMMODS-00046318]........................................ 944
14. GExcerpt from Coalcorp Mining Inc., Notice of Special Meeting
of Shareholders to be Held on February 11, 2010 and Management
Information Circular. [PSI-CI-01-000001-003, 019-020, 025-028]. 945
15. GGoldman Sachs submission to the Federal Reserve, Report of
Changes in Organizational Structure - FR Y-10, dated April
2010, re: CNR. [GSPSICOMMODS00046301-303]...................... 954
16. GExcerpt from C.I. Colombian Natural Resources I SAS and J.
Aron & Company Marketing Agreement, dated September 2011.
[GSPSI-COMMODS00046496-501, 509]............................... 957
17. GExcerpt from C.I. Colombian Natural Resources I S.A.S,
Financial Statements for the years ended on the 31st of
December of 2013 and 2012 and Statutory Auditor's Report, dated
March 2014. [GSPSICOM-MODS00046366-367, 369, 373-376, 382-383,
391-395]....................................................... 964
18. GGoldman Sachs counsel letter to the Subcommittee, dated
October 2014, re: CNR and Nufcor. [PSI-GoldmanSachs-19-000001-
009]........................................................... 978
19. GGoldman Sachs counsel letter to the Subcommittee, dated
November 2014 (... J. Aron acted as the exclusive marketing and
sales agent for CNR.). [PSI-GoldmanSachs-25-000001-003]........ 987
20. GGoldman Sachs Metals & Mining, Background to Environmental
and Social Due Diligence, last updated 2012. [FRB-PSI-300221-
230]........................................................... 990
Documents Related to Goldman Sachs Involvement with Aluminum:
21. GExcerpt from Goldman Sachs counsel letter to the
Subcommittee, dated October 2014, including chart, Aluminum
Tonnage Shipped (Metro Warehouse (Detroit) to Metro Warehouse
(Detroit)). [PSI-GoldmanSachs-20-000001-002]................... 1000
22. a. GInvoice List of Glencore Ltd. and Red Kite Master Fund
Limited. [GSPSICOMMODS00046871-872]............................ 1002
b. GGlencore Ltd. invoice to Metro International Trade, dated
June 21, 2013, in the amount of $9,909,280.66.
[GSPSICOMMODS00046873]......................................... 1004
c. GGlencore Ltd. invoice to Metro International Trade, dated
June 21, 2013, in the amount of $402,190.77.
[GSPSICOMMODS00046874]......................................... 1005
d. GGlencore Ltd. invoice to Metro International Trade, dated
September 24, 2013, in the amount of $321,105.33.
[GSPSICOMMODS00046875]......................................... 1006
e. GRed Kite Master Fund Limited invoice to Metro
International Trade, dated November 13, 2012, in the amount of
$5,735,700. [GSPSICOMMODS00046876]............................. 1007
f. GRed Kite Master Fund Limited invoice to Metro
International Trade, dated December 20, 2012, in the amount of
$632,720. [GSPSI-COMMODS00046877].............................. 1008
g. GRed Kite Master Fund Limited invoice to Metro
International Trade, dated January 28, 2014, in the amount of
$2,932,731.43. [GSPSI-COMMODS00046878]......................... 1009
h. GRed Kite Master Fund Limited invoice to Metro
International Trade, dated January 28, 2014, in the amount of
$14,084,464.63. [GSPSICOMMODS00046879]......................... 1010
23. GWarrant Finance Agreement, DB Energy Trading LLC and Metro
International Trade Services LLC, dated September 2010.
[GSPSICOMMODS-0047434-447]..................................... 1011
24. GExcerpt from Goldman Sachs Presentation, MITSI Holdings LLC,
Board of Directors Meeting, dated December 2012, slide entitled
Overview Off-warrant Deals, re: Red Kite deals.
[GSPSICOMMODS00009348]......................................... 1025
25. GMetro internal email, dated November 2012, re: Detroit Ali -
off warrant storage deal. [GSPSICOMMODS00046684-686]........... 1026
26. GGlencore/Metro email exchange, dated April 2013, re: New
Deal 09 Glencore Detroit (... all 91,000 mt for Glencore
scheduled to ship outbound in May/June will do so as scheduled
but will go to other Metro locations in Detroit (we of course
decide) and remain off warrant until June/July 2013 at which
point the material will be rewarranted.). [PSICOMMODS00046687-
691]........................................................... 1029
27. GCharts related to last Red Kite deal and Glencore deal,
prepared by Metro for LME in 2014. [GSPSICOMMODS00046666-683].. 1034
28. GMetro internal email, dated December 2010, re: Montreal (...
blocking others. *** ... Q management.). [GSPSICOMMODS00047422] 1052
29. GMetro internal email, dated February 2012, re: Stemcor 12 kt
to Detroit (... queue management.). [GSPSICOMMODS00047423-429]. 1053
30. GMetro internal email of Michael Whelan, dated June 2013, re:
Resignation (I have some questions and concerns regarding the
Chinese Wall Policy that is in place which regulates the
interaction between Metro International, its customers, and J
Aron. This morning's confrontation was extremely questionable.)
[GSPSICOMMODS00047430]......................................... 1060
31. GMetro International Trade Services (2011-2013) and (2014),
charts regarding agreements of sharing physical premiums.
[GSPSICOMMODS-00046531, 46630]................................. 1061
32. GGoldman Sachs chart, Metro International Trade Services,
Management Brief, June 2011 (Extraordinary income from
counterparties sharing physical premium with Metro ...).
[GSPSICOMMODS00009668]......................................... 1063
33. GLME counsel letter to the Subcommittee, dated November 2014
(... while the LME would view such behavior as a contravention
of the ``spirit'' of the relevant requirements, it may be
difficult to argue that it constituted a contravention of the
``letter'' of those requirements.). [LME_PSI0002459-462]....... 1064
34. GAluminum Users Group Memorandum, dated October 2012 (The
LME's terminal market model ... is broken.). [PSI-
AlumUsersGroup-01-000010-012].................................. 1068
35. GGoldman Sachs Presentation to Firmwide Client and Business
Standards Committee, Metro International Trade Services, dated
August 2011, including slide entitled, Metro Financial Summary.
[FRB-PSI-707486-500]........................................... 1071
36. a. GGoldman Sachs Presentation, MITSI Holdings LLC, Board of
Directors Meeting, dated December 2011, including slide
entitled Current Deal Pipeline. [GSPSICOMMODS00009287-309]..... 1086
b. GGoldman Sachs Presentation, MITSI Holdings LLC, Board of
Directors Meeting, dated March 2012, including slides entitled
Current Deal Pipeline and Overview Off-warrant Deals.
[GSPSICOMMODS-00009423-449].................................... 1109
c. GGoldman Sachs Presentation, MITSI Holdings LLC, Board of
Directors Meeting, dated December 2012, including slides
entitled Current Deal Pipeline and Overview Off-warrant Deals.
[GSPSICOMMODS-00009332-353].................................... 1136
d. GGoldman Sachs Presentation, MITSI Holdings LLC, Board of
Directors Meeting, dated March 2013, including slides entitled
Current Deal Pipeline and Metro's Annual Financial Performance.
[GSPSICOMMODS-00009355-377].................................... 1157
37. GLondon Metal Exchange (LME) document listing Terms and
conditions applicable to all LME listed warehouse companies,
dated April 2014. [LME_PSI0001406-427]......................... 1178
38. a. GConflict Management Procedures Between Metro and Other GS
Businesses and Personnel, Policy Issued To: Global Commodities
Sales and Trading, Global Commodities Principal Investment,
Metro Board Members, Metro Management and Staff, dated February
2010. [FRB-PSI-602457-471]..................................... 1200
b. GInformation Barrier Policy: Metro and Other GS Businesses
and Personnel, For: Global Commodities Sales and Trading,
Global Commodities Principal Investments, Metro Board Members,
Metro Management and Staff, dated March 2014.
[GSPSICOMMODS00004059-076]..................................... 1215
39. GExcerpt from Goldman Sachs counsel letter to the
Subcommittee, dated September 2014, including table listing
Total Annual Freight Allowance Paid by Metro and Annual Freight
Allowance Paid by Metro to J. Aron. [PSI-GoldmanSachs-15-000001
and GSPSICOMMODS00046232-233].................................. 1233
40. GExcerpts from Goldman Sachs counsel letter to the
Subcommittee, dated August 2014, including list of authorized
Goldman Sachs employees given access to confidential
information. [PSI-GoldmanSachs-17-000001 and
GSPSICOMMODS00046225-226]...................................... 1236
Documents Related to Morgan Stanley/General:
41. GMorgan Stanley Presentation, Global Commodities Overview,
dated May 2009. [FRB-PSI-618889-908]........................... 1239
42. GMorgan Stanley Presentation, Morgan Stanley Commodities,
Business Overview, dated February 2013, prepared for the
Permanent Subcommittee on Investigations. [PSI-MorganStanley-
01-000001-027]................................................. 1259
43. GConsolidated Holding Company Report of Equity Investments in
Nonfinancial Companies - FR Y-12, dated June 30, 2014, prepared
by Morgan Stanley, regarding its merchant banking investments.
[FRB-PSI-800009-012]........................................... 1286
Documents Related to Morgan Stanley Involvement with Natural Gas:
44. GExcerpt from Morgan Stanley Presentation, Federal Reserve
Bank of New York, Morgan Stanley Infrastructure Platform
Review, prepared by Morgan Stanley, dated September 2013. [FRB-
PSI-400321-329, 331 333, 341, 351-352, 365-366]................ 1290
45. a. GApplication of Wentworth Gas Marketing LLC for Long-Term
Authorization to Export Compressed Natural Gas, submitted to
the Department of Energy, Office of Fossil Energy, dated May
2014........................................................... 1307
b. GDepartment of Energy, Office of Fossil Energy, In re
Wentworth Gas Marketing LLC, Order Granting Long-Term
Authorization To Export Compressed Natural Gas, dated October
2014. [PSI-DOE-01-000004-016].................................. 1326
46. GExcerpt from Morgan Stanley Presentation, Morgan Stanley
Infrastructure Partners, Overview of Southern Star, dated
August 2014. [MS-PSI-00000001-016, 019-020, 023-027, 035, 037]. 1339
47. GMorgan Stanley counsel letter to the Subcommittee, dated
September 2014, re: ... Morgan Stanley's purchase of the
Deutsche Bank natural portfolio and involvement with Wentworth
Holdings, LLC. [PSI-MorganStanley-13-000001-009]............... 1364
48. GExcerpt from Morgan Stanley Presentation, Morgan Stanley
Infrastructure Partners, Southern Star Follow Up Questions,
dated October 2014. [MS-PSI-00000455-460, 465-469, 472-475].... 1373
Documents Related to Morgan Stanley Involvement with Crude Oil:
49. GExcerpts from Morgan Stanley counsel letter to the
Subcommittee, dated October 2014, re: early New York oil
storage. [PSI-MorganStanley-17-000001-002]..................... 1387
50. GExcerpts from Morgan Stanley counsel letter to the
Subcommittee, dated June 2013, re: TransMontaigne. [PSI-
MorganStanley-06-000001-004]................................... 1389
51. GExcerpts from Morgan Stanley counsel letter to the
Subcommittee, dated October 2014, re: oil storage data,
revenue, and Olco Petroleum Group. [PSI-MorganStanley-19-
000001-003].................................................... 1393
Documents Related to Morgan Stanley Involvement with Jet Fuel:
52. GExcerpts from Jet Fuel Supply Agreement between Morgan
Stanley Capital Group Inc. and United Airlines, Inc. and United
Aviation Fuels Corporation, dated September 2003. [PSI-
UnitedAirlines-01-000003, 013, 016, 020-022]................... 1396
53. GMorgan Stanley counsel letter to the Subcommittee, dated
September 2014, re: Emirates. [PSI-MorganStanley-15-000001-004] 1402
54. GEmirates counsel letter to the Subcommittee, dated October
2014, re: jet fuel purchases and hedges. [PSI-Emirates-01-
000001-004].................................................... 1406
55. GEmirates counsel letter to the Subcommittee, dated October
2014, re: jet fuel purchases and hedges. [PSI-Emirates-02-
000001-007].................................................... 1410
Documents Related to JPMorgan Chase/General:
56. a. GNotice to the Board of Governors of the Federal Reserve
System by JPMorgan Chase & Co., submitted July 21, 2005,
requesting complementary authority for physical commodity
activities. [PSI-FederalReserve-01-000004-028]................. 1417
b. GNotice to the Board of Governors of the Federal Reserve
System by JPMorgan Chase & Co., submitted November 25, 2008,
requesting complementary authority for refining activities.
[PSI-Federal Reserve-01-000553-558]............................ 1442
57. GFederal Reserve letter to JPMorgan Chase, dated April 20,
2009, granting complementary authority, re: refining
activities. [PSI-FRB-11-000001-002]............................ 1448
58. GJPMorgan Presentation, Global Commodities - Operating Risk,
dated April 2011. [FRB-PSI-623086-127]......................... 1450
59. GJPMorgan Chase physical inventory positions, 2008-2012.
[JPM-COMM-PSI-000015-016]...................................... 1491
60. GMerchant Banking Investment in Henry Bath, undated, prepared
by JPMorgan. [FRB-PSI-000580-582].............................. 1493
61. GExcerpt from JPMorgan Presentation, Commodities Physical
Operating Risk, Update to CIBRC, dated January 2013, with slide
entitled Physical Operating Risk Review of Project Liberty.
[FRB-PSI-301379, 381].......................................... 1496
62. GConsolidated Holding Company Report of Equity Investments in
Nonfinancial Companies - FR Y-12, dated June 30, 2014, prepared
by JPMorgan, regarding its merchant banking investments. [FRB-
PSI-800005-008]................................................ 1498
63. GExcerpts from Global & Regional Investment Bank League
Tables - 1H2014, dated September 2014, prepared by Coalition
Analytics Intelligence. [PSI-Coalition-01-000019-021].......... 1502
64. GJPMorgan Chase counsel letter to the Subcommittee, dated
June 2014, re: J.P.Morgan Ventures Energy Corporation (JPMVEC).
[PSI-JPMC-11-000001-002]....................................... 1505
65. GJPMorgan Chase counsel letter to the Subcommittee, dated
October 2014, re: JPMVEC and Project Liberty. [PSI-
JPMorganChase-14-000001-009]................................... 1507
66. GJPMorgan Chase counsel letter to the Subcommittee, dated
October 2014, re: various commodity issues. [PSI-JPMorgan-15-
000001-008].................................................... 1516
Documents Related to JPMorgan Chase Involvement with Electricity:
67. GPower Plants Owned or Controlled via Tolling Agreements,
2008 to present, chart prepared by JPMorgan. [JPM-COMM-PSI-
000022-025].................................................... 1524
68. GFederal Reserve Bank of New York letter to JPMorgan Chase,
dated March 2008, granting 2-year grace period for power plants
and other assets acquired from The Bear Stearns Companies Inc.
[FRB-PSI-900001-003]........................................... 1528
69. GExcerpts from JPMorgan Presentation, Global Commodities Deep
Dive Risk Review, dated October 2009. [FRB-PSI-200634-638, 640-
642, 644-645, 649-655]......................................... 1531
70. a. GNotice to the Board of Governors of the Federal Reserve
System by JPMorgan Chase & Co., submitted December 30, 2009,
requesting complementary authority for energy management
activities. [PSI-FederalReserve-01-000561-567]................. 1548
b. GNotice to the Board of Governors of the Federal Reserve
System by JPMorgan Chase & Co., submitted December 30, 2009,
requesting complementary authority for tolling activities.
[PSI-FederalReserve-02-000012-033]............................. 1555
71. GJPMorgan letter to the Federal Reserve, dated February 2010,
requesting extension and additional complementary authority.
[FRB-PSI-300286-290]........................................... 1577
72. GFederal Reserve letter to JPMorgan Chase, dated June 2010,
granting complementary authority regarding power plants. [FRB-
PSI-302571-580]................................................ 1582
73. GJPMorgan Transaction Overview, dated August 2010, regarding
purchase of Kinder Morgan Power Plant. [FRB-PSI-300066]........ 1592
74. GUndated document prepared by JPMorgan regarding power plant
restructuring. [FRB-PSI-300352-353]............................ 1593
75. GJPMorgan Presentation, Commodities Operational Risk Capital,
dated May 2011. [FRB-PSI-300727-736]........................... 1595
76. GJPMorgan internal email, dated April 2010, re: Resume for
Power, attaching resume of John Howard Bartholomew (Identified
a flaw in the market mechanism Bid Cost Recovery that is
causing the CAISO to misallocate millions of dollars.). [PSI-
FERC-02-000009-010]............................................ 1605
77. GJPMorgan internal email, dated October 2010, re: Please sir!
mor BCR!!!! [PSI-FERC-02-000042]............................... 1607
78. GJPMorgan internal email from Francis Dunleavy to Blythe
Masters, dated March 2011, re: CAISO update (I will handle it
but it may not be pretty.). [PSI-FERC-02-000067]............... 1608
Documents Related to JPMorgan Chase Involvement with Copper:
79. GJPMorgan Presentation, JPM Commodity Capabilities, dated
January 2012. [FRB-PSI-200832-865]............................. 1609
80. GExcerpt from JPMorgan Presentation, FED/OCC Quarterly
Meeting, dated February 2013, including slide entitled,
Physical Inventory Limits from FED & OCC. [FRB-PSI-301443, 447] 1639
81. GFederal Reserve email to the Subcommittee, dated October
2014, re: treating copper as ``bullion.'' [PSI-FRB-16-000001].. 1641
82. GJPMorgan counsel email to the Subcommittee, dated October
2014, re: metals trading desk. [PSI-JPMorgan-16-000001]........ 1642
83. GJPMorgan counsel letter to the Subcommittee, dated October
2014, re: JPMorgan copper activities. [PSI-JPMorgan-18-000001-
008 and JPM-COMM-PSI-000064-066]............................... 1643
84. GOCC Interpretive Letter No. 553, dated May 1991, re:
treating platinum as bullion. [PSI-OCC-01-000112-113].......... 1651
85. GOCC Interpretive Letter No. 693, dated December 1995, re:
treating copper as bullion. [PSI-OCC-01-000135-141]............ 1653
86. a. GComment Letter from Senator Carl Levin to the Securities
and Exchange Commission, dated, July 2012, re: JPM XF Physical
Copper Trust Pursuant to NYSE Area Equities Rule 8.201......... 1660
b. GComment Letter from Senator Carl Levin to the Securities
and Exchange Commission, dated, March 2013, re: JPM XF Physical
Copper Trust, Form S-1 Registration Statement.................. 1667
87. GComment Letter from law firm representing copper fabricating
companies to the Securities and Exchange Commission, dated July
2012, re: rule change allowing copper ETF. [PSI-
VandenbergFeliu_to_SEC(July2012)-000001-005]................... 1682
88. GLME email to the Subcommittee, dated November 2014: re:
LME's Public Warrant Banding Report, dated December 15, 2010.
[PSI-LME-06-000001]............................................ 1687
Documents Related to JPMorgan Chase Involvement with Size
Limits:
89. GMethodology for Calculating Capacity Payments for Purposes
of 5% Limit, undated, prepared by JPMorgan. [FRB-PSI-300345-
347]........................................................... 1688
90. GExcerpt from JPMorgan Presentation, FED/OCC/FDIC Quarterly
Meeting, dated September 2013, Physical Inventory Limits from
FED & OCC. [FRB-PSI-301383, 387]............................... 1691
91. GExcerpt from JPMorgan Chase counsel letter to the
Subcommittee, dated October 2014, including chart with
inventory levels for copper, platinum, and palladium as of
September 28, 2012 held by JPMorgan Chase Bank. [PSI-JPMorgan-
15-000001 and JPM-COMM-PSI-000048-049]......................... 1693
92. GJPMorgan internal email, dated January 2012, re:
Consolidated OCC Summary 10 Jan 2012, providing inventory
levels for metals held by JPMorgan Chase Bank. [OCC-PSI-
00000336]...................................................... 1696
93. GJPMorgan internal email, dated January 2012, re:
Consolidated OCC Summary 19 Jan 2012 (... took further action
yesterday to lend 100k tonnes of materials to the market as
well as sell 400k tonnes of material to JPMVEC.). [OCC-PSI-
00000344]...................................................... 1697
94. GJPMorgan internal email, dated January 2012, re:
Consolidated OCC Summary 19 Jan 2012 (It will not happen again
that you learn about it after the fact when it is an issue
within our control.). [OCC-PSI-00000340]....................... 1698
95. GJPMorgan internal email, dated February 2012, re: 5% Limit
Calculation (Following are our current and proposed
methodologies for calculating the [OCC] 5% limit.). [OCC-PSI-
00000324]...................................................... 1699
96. GJPMorgan Chase counsel email to the Subcommittee, dated
November 2014, (JPMCB's daily aluminum inventory values and the
corresponding LME cash price for aluminum.). [PSI-JPMorgan-23-
000001]........................................................ 1700
97. GExcerpt from JPMorgan Chase counsel letter to the
Subcommittee, dated October 2014, re: aluminum trades and 5%
limit. [PSI-JPMorgan-17-000001-002]............................ 1701
98. GExcerpt from JPMorgan Chase counsel letter to the
Subcommittee, dated November 2014, re: JPMCB aluminum holdings.
[PSI-JPMorgan-19-000001-003]................................... 1703
99. a. GMetro legal counsel letter to LME, dated January 27,
2014. [GSPSICOMMODS00046661-665]............................... 1706
b. GMetro legal counsel letter to LME, dated April 15, 2014.
[GSPSICOMMODS00046834-848]..................................... 1711
100.a. GResponses of Hon. Daniel K. Tarullo, Federal Reserve
System, to supplemental questions for the record from Senator
Carl Levin..................................................... 1726
b. GResponses of Chiara Trabucchi, Industrial Economics,
Incorporated, to supplemental questions for the record from
Senator Carl Levin............................................. 1735
101.a. GResponses of Gregory A. Agran, Goldman Sachs & Co., to
supplemental questions for the record from Senator Kelly
Ayotte......................................................... 1739
b. GResponses of John Anderson, JPMorgan Chase & Co., to
supplemental questions for the record from Senator Kelly
Ayotte......................................................... 1745
c. GResponses of Simon Greenshields, Morgan Stanley, to
supplemental questions for the record from Senator Kelly
Ayotte......................................................... 1751
102.a. GResponses of Jorge Vazquez, Harbor Aluminum Intelligence
Unit, LLC, to supplemental questions for the record from
Senator Tammy Baldwin.......................................... 1754
b. GResponses of Nick Madden, Novelis, Inc., to supplemental
questions for the record from Senator Tammy Baldwin............ 1759
VOLUME 2
103. GDocument Locator List and documents cited in footnotes to
``Wall Street Bank Involvement With Physical Commodities,'' the
Report released in conjunction with the Subcommittee hearing on
November 20 and 21, 2014. The Document Locator List provides
the Bates numbers or a description of the documents cited in
the Report and the hearing record page number where the
document can be located. Not included are documents related to
Subcommittee interviews, which are not available to the public,
and widely available public documents.......................... 1763
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