The Importance of The Deutsche Bank Silver Fix Lawsuit Settlement
This post is intended to remind you that this case is not about the present and it's not about the $38MM dollars. Instead, the true significance of this lawsuit will be on display over the coming months and years as innumerable new class action lawsuits are filed against The Bullion Banks for their collective role in rigging and manipulating the precious metals markets.
First, some links. Here's the news item from yesterday released by Reuters and a comprehensive write-up from Zerohedge:
And here are two links from back in April to remind you of the case:
The typical internet reaction I've seen thus far is this:
A) This is only $38MM. Where's my money? I've lost a lot of money due to the metals being manipulated but I won't get any of this settlement and, because the dollar amount is so small, neither will anyone else.
B) This is just another slap on the wrist. A paltry $38MM is a drop in the bucket for Deutschebank and they'll now skate along with the rest of The Banks.
C) All of the manipulation conspiracy whackos are dead wrong. This case was just a nuisance and Deutschebank only agreed to settle so that the whole thing would just go away. Big corporations do this all the time so move along now. There's nothing to see here.
AND I'M HERE TO TELL YOU THAT ALL THREE OF THOSE OPINIONS ARE DEAD WRONG.
The impact and future effects of this case are significant and real. Yes, $38MM is not a lot of money and the settlement will only be disbursed to those few who had participated in the class action. But go back up this page and listen to the interview that I did with The Daily Coin. This is the first time that a settlement has been reached in a precious metals price rigging lawsuit. It's also the first time that a Bank has agreed to turn state's evidence against the other Banks that rig the process. The two items ensure that the case against both HSBS and Scotia is being built and that they will soon be forced to settle, too. Already, a NY judge has allowed the case to proceed into legal discovery (subpoenas, depositions, documents, etc) for the first time ever.
But the real story will be what comes next...A virtual avalanche of similar class action lawsuits, each alleging price manipulation and multi-million dollar plaintiff losses. Now that DB is "singing" and legal discovery is proceeding in this single case, the floodgates are truly open.
So think of this from the point of view of a Bullion Bank. Not only are you getting squeezed by tight margins and limited physical supply in London, you're also deeply underwater on most of the Comex futures positions that you've shorted in New York. And now this...An almost endless stream of future lawsuits from investors around the world whom you've cheated and defrauded over the past 20 years! What do you think these Banks are going to do in response? Many to most of them will just simply exit the bullion banking business! Can you even comprehend the monumental change this would represent?
Of course this is not going to happen over the next few days or weeks. Instead, a process like this will take months to play out which is WHY we felt the need for this post and reminder. Do not get caught up in the headline of just this one settlement and do not allow some Cartel shill to persuade you that this whole thing is meaningless.
I can assure you that, in the future, when we look back on the rubble of what was "bullion banking", the date of April 13, 2016 will live in infamy. That was the day that the settlement was first announced and it was the day that The Bullion Banks' entire house of cards began to crumble under the weight of accumulated fraud, deceit and lies.
Hang in there, my friend. We are winning.