WALL STREET VULTURES DRIVE UP FOOD PRICES WHILE BILLIONS STARVE
By Keith Johnson
FEBRUARY 06, 2013
Goldman Sachs reaps $400M “bountiful harvest” by gambling on America’s food staples
While people around the globe struggled to put food on the table in 2012, banking giant Goldman Sachs reaped a bountiful harvest. According to a new report by the UK-based anti-poverty group, World Development Movement (WDM), Goldman Sachs made approximately $400M in profits last year by betting on the prices of food staples like wheat, corn and soy.
“Goldman Sachs is the global leader in a trade that is driving food prices up while nearly a billion people are hungry,” says WDM campaigner Christine Haigh. “The bank lobbied for the financial deregulation that made it possible to pour billions into the commodity derivative markets, created the necessary financial instruments and is now raking in the profits. Speculation is fueling volatility and food price spikes, hurting people who struggle to afford food across the world.”
The report goes on to conclude that the only thing that will stop banks from gambling on hunger is tough regulation, something that Wall Street is fiercely fighting against.