According to a Reuters report, a quiet Sacramento suburb was shaken by an explosion at an asphalt refinery in Elk Grove.
The explosion alarmed local residents who live just a few hundred feet away. Local fire fighters rushed to put off the fire that was already generating trail of black smoke. Residents called 911 to report the fire incident, said Consumnes Fire Department Deputy Head John Michelini.
The 181,000 gallons of flaming asphalt the 50 foot tank was not owned by refining and retail operator Paramount Petroleum Corp. or Alon USA Energy, its parent company. The asphalt in the tank was actually owned by Goldman Sachs according to the contract terms of the company with Alon. Goldman Sachs is one of the largest commodity traders in Wall Street.
Michelini said, "We know it's called Paramount Petroleum, but other than that it doesn't matter."
However, this may be a great deal for regulators and lawmakers.
The fire incident that occurred August 15 of last year highlighted real world risk that some in Washington fear might be jeopardizing the powerhouse of Wall Street. This was after Goldman's aggressive expansion into physical commodity markets.
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