DEUTSCHE BANK SETTLES SILVER MANIPULATION LAWSUIT

173
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: https://www.reuters.com/article/us-deutschebank-settlement-silver-idUSKC...

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.

TF

THURSDAY PM UPDATE:

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

Founder
turd [at] tfmetalsreport [dot] com ()

  173 Comments

lnardozi
Apr 13, 2016 - 9:15pm

First

And on such dynamite news!

november4
Apr 13, 2016 - 9:15pm

restitution?

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

Wingy
Apr 13, 2016 - 9:16pm

What!!? First?

Did I get it?

Nope, but second on this post is good enough!

madams777
Apr 13, 2016 - 9:22pm

Wow

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.

lakedweller2
Apr 13, 2016 - 9:30pm

Fine - Meaning No Jail

Silver going down. Settlement...civil...no indictments...no 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:

NUGTCALL
Apr 13, 2016 - 9:40pm

BS NO JUSTICE. NO ONE WILL GO

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.

bookers126
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!

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Key Economic Events Week of 7/8

7/9 8:45 ET Fed Stress Conference, three Goon speeches
7/10 8:30 ET CGP Hump-Hawk prepared remarks
7/10 10:00 ET CGP Hump-Hawk House
7/10 10:00 ET Wholesale Inventories
7/10 2:00 ET June FOMC minutes
7/11 8:30 ET CPI
7/11 10:00 ET CGP Hump-Hawk Senate
7/11 12:30 ET Goon Williams
7/12 8:30 ET PPI

Forum Discussion

by sierra skier, 8 hours 44 min ago
by atarangi, 13 hours 29 min ago
by NW VIEW, Sep 14, 2019 - 12:22pm
by Green Lantern, Sep 14, 2019 - 11:39am
by sierra skier, Sep 14, 2019 - 9:47am
randomness