How $GS Makes an Easy $400M by Betting Against You

“Goldman Sachs has boosted its bottom line on the backs of people struggling to pay for food, according to a new report in The Independent.

The bank made about $400 million last year by betting on the prices of food staples, according to an analysis for The Independent by the World Development Movement. This speculation is fueling rising food prices, according to the report.

In an email to The Huffington Post, Goldman Sachs spokesman Michael DuVally accused the report of relying on “uninformed speculation” and noted that the rise in food prices can be attributed to a variety of factors.

“Research by respected international bodies like the OECD demonstrates clearly that long-term trends, including increased meat consumption by the growing middle class in the emerging markets and the increased use of biofuels in the developed markets, have created a backdrop for global food shortages,” DuVally wrote.

This is not the first time that Goldman has faced accusations of contributing to the hunger crisis. A 2011 article in Foreign Policy argued that food price speculation by Goldman and other banks has caused the cost of food to surge.

However, there is evidence that rising food prices may not be Wall Street’s fault….”