Wed, Apr 13, 2016 - 9:11pm

For the first time, we have a successful settlement of charges related to silver price manipulation. Also for the first time, the Bank involved is named with other Banks as co-conspirators! From Reuters: "Deutsche Bank AG has agreed to settle U.S. litigation over allegations it illegally conspired with Bank of Nova Scotia and HSBC Holdings Plc to fix silver prices at the expense of investors, a court filing on Wednesday showed."

It is difficult to understate the potential significance of this settlement. Of course, we'll have to see where this takes us and what impact, if any, this news will have on paper prices and the overall paper derivative pricing scheme. However, this is huge news! For the first time, a Bullion Bank has admitted to price manipulation and, just as significantly, it has named names. Specifically listed as co-conspirators with DeutscheBank are:

  • UBS
  • ScotiaBank
  • HSBC

The full link from Reuters is here:

Here is the entire text of the story:

Deutsche Bank AG has agreed to settle U.S. litigation over allegations it illegally conspired with Bank of Nova Scotia and HSBC Holdings Plc to fix silver prices at the expense of investors, a court filing on Wednesday showed.

Terms were not disclosed, but the accord will include a monetary payment by the German bank, a letter filed in Manhattan federal court by lawyers for the investors said.

Deutsche Bank has signed a binding settlement term sheet, and is negotiating a formal settlement agreement to be submitted for approval by U.S. District Judge Valerie Caproni, who oversees the litigation.

A Deutsche Bank spokeswoman declined to comment. Lawyers for the investors did not immediately respond to requests for comment.

Investors accused Deutsche Bank, HSBC and ScotiaBank of abusing their power as three of the world's largest silver bullion banks to dictate the price of silver through a secret, once-a-day meeting known as the Silver Fix.

According to the lawsuit, the defendants distorted prices on the roughly $30 billion of silver and silver financial instruments traded annually, violating U.S. antitrust law.

UBS AG was also named as a defendant. Investors accused the Swiss bank of conspiring to exploit the Silver Fix, though it did not help set the benchmark.

Spokesmen for HSBC and ScotiaBank declined to comment, saying they could not discuss pending litigation. A spokeswoman for UBS did not immediately respond to requests for comment.

The lawsuit is among several in Manhattan federal court in which investors accused banks of conspiring to rig rates or prices in financial and commodities markets.

The case is In re: London Silver Fixing Ltd Antitrust Litigation, U.S. District Court, Southern District of New York, No. 14-md-02573.

(Reporting by Jonathan Stempel in New York; editing by Grant McCool and Diane Craft)

This could very well be the first, concrete step in finally ending the tyrannic reign of The Bullion Banks and their paper derivative pricing scheme. Time will tell. For now, however, be hopeful and rejoice for at last some measure of justice has been served.



As you can see on the document below (click to enlarge), the settlement now regards DeutscheBank's manipulation of "Gold Futures and Options Trading" as well. This story will continue to evolve over the next few days and weeks. We'll keep you posted.

About the Author

turd [at] tfmetalsreport [dot] com ()


Apr 13, 2016 - 9:15pm


And on such dynamite news!

Apr 13, 2016 - 9:15pm


So, do those 1000s of us who got screwed get any of our money back?

Apr 13, 2016 - 9:16pm

What!!? First?

Did I get it?

Nope, but second on this post is good enough!

Apr 13, 2016 - 9:22pm


Will this make bubblevision tomorrow... I think Kirby is vindicated here, and this HAS to be at least a component of the recent emergency Fed teaparties.

Apr 13, 2016 - 9:30pm

Fine - Meaning No Jail

Silver going down. criminals... Victims get nothing.

edit: extreme criminality. MF Global all over. Goldman on a daily basis. JPM o n a good day. The US will give medals.

Mr. Fix
Apr 13, 2016 - 9:31pm

This changes nothing

They'll pay their fines, and continue to screw the planet, until a systemic collapse.

Apr 13, 2016 - 9:32pm

Just to show you who's still in charge

Though we discussed this likelihood in the last two podcasts, it doesn't make it any easier to watch....

Just another $10 flash-crash in gold during the low-volume, evening Globex trade. There was no news headline which prompted this and it took place before the "Asian open".

No civil or criminal penalty is strong enough for these conniving, thieving bastards.

Here's the 5-minute chart:

And so that you can see the dramatic severity of it, here's a one-minute chart:

Apr 13, 2016 - 9:40pm


BS NO JUSTICE. NO ONE WILL GO TO JAIL. How in the fick is their justicw if you make a trillion then pay 200 million in fines, That is even more of an injustice. It is really a rigged game, the government makes money, the banks make money.........F me.

Apr 13, 2016 - 9:41pm

Let''s All Sue Them

I am sure all of us bought/sold during the rigging years.
Now can all sue in the most inconvenient forums to recover damages and seek monster punitive damages to punish them. Hell, all the discovery has been done. Need to get the miners to get off their butts and sue too.

They were all damaged too. This could be great news!

Apr 13, 2016 - 9:43pm



Apr 13, 2016 - 9:43pm

That's EXACTLY the point!

This could very well be the first shoe to drop as, at least to my knowledge, this is the first time a Bank has ever admitted to wrongdoing by agreeing to a settlement.

Apr 13, 2016 - 9:44pm


Blast email from Dr. Janda:

8:11 PM (32 minutes ago)

As outlined on Operation Freedom on March 13th with Rob Kirby..... tonight it is out!


Apr 13, 2016 - 9:46pm


Bankrupt deuche admitting to anything JPM or Goldman did...convenience.

exit: waiting now for Lehman and Beare Sterns to admit guilt

Apr 13, 2016 - 9:47pm


I completely agree with your sentiments. This changes nothing. Just another slap on the wrist for the bad guys. If they were really serious about stopping this in it's tracks, there would be some jail time for top executives and an over-the-top fine to take back every dime they ever made doing this plus some. Also, why is JPMorgan's name omitted from this list. Perhaps, they are just getting rid of the competition so that American banks can have the field all to themselves. I am afraid that, until proven otherwise, this is another non-event in the serial manipulation of the pm's. I would like nothing better than to be proven wrong. Don't think I will be though.

Apr 13, 2016 - 9:51pm

Criminal Indictments By Name

That would be new and legally correct. This is more oligarch corruption.

Apr 13, 2016 - 9:58pm
Fred Hayek
Apr 13, 2016 - 9:58pm

Rob Kirby you magnificent bastard!

So the man is proven right. Let's not get bent out of shape, "Oh no, Bluto! It took 4 weeks instead of 2 like Rob said it would!"

Apr 13, 2016 - 9:59pm

Mexican Jumping Soy Beans

Anyone else been following this?

Apr 13, 2016 - 10:00pm

I understand the cynicism

Look, if ANYONE has the right to be cynical about this stuff, IT'S ME!

That said, this is potentially VERY significant as DB has "admitted" guilt by settling. There may also be some behind-the-scenes action to force the other Banks to admit guilt, too. Let's just see where this takes us in the days ahead.

In the short term, it is extremely important that you are aware of what The Banks are attempting to do tonight. Having failed to break the 50-day MA in gold during Comex hours last week, they're trying to do it tonight. Their goal is to break the 50-day before the Comex re-opens tomorrow in the hopes of setting off an avalanche of sell-stop orders from some of the 500,000+ contracts of open interest. There's not much you can do but watch unfortunately...hoping that The Forces of Darkness are unsuccessful.

Apr 13, 2016 - 10:04pm


want to wander over to Traitor Dan's and break the news?

Fred Hayek
Apr 13, 2016 - 10:08pm

The existing mechanisms don't change but minds might

Sure, they can still bomb the gold and silver markets without cause right now. But the whole game has a lot of anscillary parts to it. For instance, Craig has often pointed out how much of the management of perception game is about suppressing western demand for precious metals. When a news story like this goes out, the smarter finance drones can understand the implications of this. Maybe they've seen and heard GATA or others talk about manipulation in the precious metals markets and they didn't want to accept it. So they just sort of ignored it or refused to consider it more. Now maybe some of them are having a hard time buying the action in any market. Nothing works like it should. It's uncomfortably close to things they've heard from precious metals enthusiasts and others. Then they see this. The immediate take away is that, oh shit, they were right. Those gold and silver people. So, what does this guy do? Well, isn't it possible that some of these guys now want in? Some of them want to buy gold and silver. And every little bit of extra buying pressure hurts the cartel.

Fred Hayek
Apr 13, 2016 - 10:09pm

ag4me. At last someone spells it right!

You hate to be the grammar nazi. Thanks for getting it right.

Apr 13, 2016 - 10:11pm


Kirby speculated that this would be the spark that lights the fuse. Let's hope.

Dear Cali Lawyer, I am all ears.

- H.

Apr 13, 2016 - 10:11pm

"manipulation" of "trading" huh?

...yep, those darn USD based fiat exchanges, real metal, plus the damn things are rigged.

Dagnabbit... if only somehow, somewhere, against all odds, somebody had some actual physical exchanges!! And, if it's not too much to ask, some non-USD charts to go along with em... Glory Be!! ...wouldn't that just be grand??

Apr 13, 2016 - 10:15pm


I went all in on miners this week! Let's hope so..

Apr 13, 2016 - 10:20pm

Entertaining Reading

Follow this link, and read the Bank's Lawyers argue for dismissal. All points now debunked.

- H.

Apr 13, 2016 - 10:21pm

What Is It About Criminal That No One Wants To Accept

As long as there is no criminal action then: there is corruption at all levels of government. The White House is criminal. The Justice Dept is Criminal. The regulators are criminal. The Central Bankers are criminal. Your Senators and Congressmen are criminals. There are no Civil alternatives. There are no excuses. There are no compromises. Enough BS.

Apr 13, 2016 - 10:25pm

Like to hear Keith Neumeyers take

It`s fraud, money has been stolen from him and all the other silver miners, I`m sure they will have something to say about that, at least I`d like to think so.

Apr 13, 2016 - 10:32pm
Angry Chef
Apr 13, 2016 - 10:33pm

Rob Kirby


Send a message to Rob Kirby that the Angry Chef, Sam Shleppes, and Danforth Coxwell ( and anybody else in this neck of the woods ) want to buy him lunch. Think about this folks. I believe Rob said that this is " the tip of the iceberg ". Why would anybody at this point participate in a paper Silver market, or any paper market with this news ? Only the dumbest of the dumb... and we do have that to contend with. But all it's going to take is a very LARGE PLAYER to come in..que Russia and China, and voila.....

Complete and utter madness. Cat's living with dog's !!!!

SS121...all of a sudden the charts might start to matter.....

PS: Prepare for a huge false flag in the day's to come. Afterall, isn't Silver referred to as " The Devil's Metal " ?


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