Metallgesellschaft AG, or MG, is a German conglomerate, owned largely by Deutsche
Bank AG, the Dresdner Bank AG, Daimler-Benz, Allianz, and the Kuwait Investment
Authority. MG, a traditional metal company, has evolved in the last four years into a
provider of risk management services. They have several subsidiaries in its "Energy
Group", with MG Refining and Marketing Inc. (MGRW) in charge of refining and
marketing petroleum products in the U.S.[1] In December, 1993, it was revealed publicly
that the "Energy Group" was responsible for losses of approximately $1.5 billion.
MGRM's expanded venture into the derivatives world began in 1991 with the hiring of
Mr. Arthur Benson from Louis Dreyfus Energy. It was Benson's strategy that eventually
contributed to the massive cash flow crisis that MG experienced.