[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 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 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 [GRAPHIC] [TIFF OMITTED]