DEUTSCHE BANK SETTLES SILVER MANIPULATION LAWSUIT

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: http://www.reuters.com/article/us-deutschebank-settlement-silver-idUSKCN0XA2RU

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.

173 Comments

lakedweller2's picture

@imfd

You are right. To make a criminal claim, you have to be a victim.  We are all victims and that wide spread harm is hard to treat in court when there are 300 million victims and having them all personally testify.  But every  corporate CEO miner could make a criminal victim, since Citizens United says corporations are "people".  One criminal indictment for every miner in the world.  Run sentences consecutively and make co defendants out of every politician and regulator that exercised gross negligence in the performance of their elected or appointed duties.

imfd's picture

SS121, would you expand on it a bit please

Maybe we are being played but since manipulation has been admitted, doesn`t this change things ? Up until now it was a "conspiracy theory", but as I stated in an earlier post, now the silver miners know that they were robbed by criminal bank schemes, it becomes a crime. Now I don`t believe for a moment that the law and justice are the same thing, but if the miners got together, or even acted alone, it seems to me that the chances of "justice"improve if a crime has been admitted. jmho

streber's picture

Yes, Da Boyz are still in charge...

Violating a rule of Bernie Baruch, "Never discuss your trades," I let go about 2/3 rds of my JUNs.    The Cartel has been sending signals with these quick water fall drops (one this afternoon & two this evening).  

It's been a good year.  Made up last year's loss and a good bit more. Want to keep it, and, I'm thinking we're down by EoW which sets up breaking bad for next week.

I'm happy now if Au goes up or down.  

Also, want to up grade from my 2010 Crosstour to a new 2015.  I can buy my mileage down from 84,000 now to 101 miles (off showroom floor) for about 24 cents a mile.  Seems better investment than money in the bank or a brokerage account.

Thx Craig for you analysis of this banker playpen.

P.S. -- I'm also getting concerned about paper in general, COMEX doing a Corzine

Markedtofuture's picture

Re: Entertaining Reading

@ Havenstein...that article is from June 2015.

Law360, New York (June 1, 2015, 11:11 PM ET) -- Deutsche Bank AG, HSBC USA Bank NA and the Bank of Nova Scotia asked a New York federal judge Friday to dismiss a multidistrict litigation case alleging they fixed the price of silver, citing a lack of facts supporting the case.

canary's picture

The AM/PM Fixes....are only a wool over public eyes...

Like a "sacrificial lamb".........The center of the crime is COMEX!....untouchable and away from the spotlights.

Whoever controls gold/silver, uses Comex as the most powerful crime tool.

ag1969's picture

Sorry if posted already...

...I no longer have time to follow all comments, and I don't even know how true this is...

CHINA SAYS "NO DOLLARS" FOR NEW YUAN

In a shocking move likely to crush the US economy overnight, China is refusing to make its new gold-backed Yuan, convertible from or to US Dollars.  The new Yuan will be introduced next Tuesday, April 19.

When the International Monetary Fund (IMF) agreed to add the Yuan to the basket of world currencies used for Global Reserves and International Trade, they wanted China to make the Yuan more reliable as a currency. Since then, China has almost un-pegged its Yuan from the Dollar, allowing its value to fluctuate on world markets.  

But for years, China has been amassing huge amounts of gold bullion; some have said their appetite for bullion has been "staggering."  And with a new gold-backed Yuan to be issued next Tuesday, the entire world will have a choice of a new currency to use for international trade:  The old US Dollar which is backed by nothing, or the new Chinese Yuan, which is backed by gold.  Which currency would YOU use?

When this new currency is issued, countries that have been forced to use US Dollars for decades, and have had to keep billions of dollars in their foreign currency reserves, will be free to dump those dollars.  But they won't be able to dump them to China for the new gold-backed, Yuan!

China has reportedly decided "there can be no conversion of gold-backed Yuan to or from US dollars."  What China fears is that many countries around the world will want to trade their reserve US dollars  for the new Yuan, leaving China with mountains of worthless US dollars.  China already has several trillion in US dollar reserves and does not want or need more.

If news of this decision by China is correct, then countries around the world may just have to decide whether or not they wish to continue trading with the USA at all?

The upheaval this could cause as early as next week, would be staggering.  

This is a fast-=developing story; check back.

https://www.superstation95.com/index.php/world/1152

SS121's picture

Canary

The center of the crime is the silver chart itself.  It's a hoax.  The prices displayed on the silver chart do not come from the Comex.  

[Most Recent Quotes from www.kitco.com]

You are kept passionately engaged in what may or may not be going on at the Comex as a distraction.

SS121's picture

imfd Re: expanded version

the bros. are playing you guys like a fiddle.  again.

Expanded Version

The small group of people who through deception and trickery now own the world's central banks, currencies, "markets", charts and media are again applying their same deceptive tactics with this "manipulation" confession, ...and all their strangely loyal victims are lappin' it up and not missing a single note.

canary's picture

SS121

I'm not in a position to penetrate that theory....But I passionately agree that the whole gold/silver trading and display market is a giant hoax.

sakelley's picture

TURD

Yes, I did come across as cynical about this because I am. The rotten bastards have rigged every market known to man, been caught rigging every market known to man, and the few that have been caught only  pay a pittance in fines. No one goes to jail or is even indicted for any of these massive and ongoing frauds. The worst part is that, after being caught, they resume the same criminal behavior that got them in trouble in the first place. I guess if you make billions, paying a fine in the millions is considered a 'cost of doing business'. Until something occurs that disrupts this cycle, I will remain cynical that changes are afoot. Perhaps this DB event is the start of a game changer, but I need to see a lot more than this to be a believer. Past events necessitate this skepticism. I look at this as a very, very, very small tip of a very, very, very big iceberg. Hopefully, the tips  get larger as time goes on. I would love nothing more than to wake up one morning and see Jamie Dimon or Lloyd Blankfein taking a perp walk down Wall Street in handcuffs on national tv. We can dream can't we?

Havenstein's picture

@ Markedtofuture

Correct.

renozep's picture

@ag1969- No Conversion -No Dollars to Yuan

IF TRUE- seems this would be much more significant news than the DB admission.

Anyone seen anything else on this?  

TinHat's picture

Can hardly wait

awesome that means at least three people are going to prison.  What are their names?

tyberious's picture

RE: Sorry if posted already...

That's what I speculated all of the CME, FED, Obama meetings are about.

renozep's picture

Re: ag1969 post- no dollars to yuan conversion

Been looking around- can't find anything else on this. The byline on the article is "US Reporter" over at Superstation 95. He cites no sources.  Looks like it is probably just fringe crazy BS.  Time will tell.

tyberious's picture

s THIS The Reason Why Yellen

s THIS The Reason Why Yellen & President Obama Are Having So Many Secret Meetings?

from The Wealth Watchman:

Things are now deteriorating in the global economy so quickly, that it cannot be hidden from the public any longer. Just yesterday, the world sat tight as the Federal Reserve and the President had a secret meeting.

However, it was the advanced nature of the meeting that turned the most heads.  Just look at nature of the announcement, via the Federal Reserve’s own website:

Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 2:00 PM on Tuesday, April 12, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.

Read More

California Lawyer's picture

Hey Everyone - Silver Fix Lawsuit Settlement

I just stumbled in from a super long day.

I spotted this post from Mr. TF, and thought "oh my!  Perhaps this is significant?"

I just now read - well, skimmed mostly - the 155 page First Amended Complaint.  It reads like a Cliff Notes version of how paper silver is traded.  Fascinating, awesome, intuitively obvious are all words that come to mind.

Having read it, now I need to read the motions to dismiss, and the orders denying the motions.  

I will also try to read the crystal ball and predict what, if anything, a settlement means going forward.

I am encouraged that the lawsuit was based on statistical analysis, with real evidence, as well as a detailed, factually dense lawsuit that alleged, in a comprehensive manner, the things about manipulated price that we have all known here, for years.

The lawsuit even discusses traders doing pattern recognition and being able to trade in a manipulated market based thereon.  Sounds familiar, no?  Now, let me see where I have heard that before?

Trader Dan, all I can say to you is now what is your excuse for being so pompous, and WRONG!  

Anyhow, I'll give it a go tomorrow and will post something.  Stay tuned.

Safety Dan's picture

7 Blunders Of The World That Lead To Violence; By Gandhi

12932784_1802706786625087_53924154773597

SilveryBlue's picture

Yay Cal

I would personally be interested in the background to the suit. Why was it heard in a USA court - presumably because clients were US.

So. How long before other countries (who have courts & revenue depts grabbing at every cent they can find) take similar actions? Why let USA benefit from fines etc when the whole world was victim?

'Scuse the shaky writing - NZ IRD are fossicking around the couch for my small change.

Owtovit's picture

DB fines

So let me get this right

DB admit to fixing and name colluders in said fixing, indicating a criminal cartel RICO scheme.

The court is to impose fines....who gets the fines? The USG?

But surely the people who have been wronged should be compensated with said fines.

IMHO if the USG/regulatory authority gets the fines then surely they are complicit in said fraud/manipulation by default by keeping fines that should go to the injured parties

this is all completely Fuct!

Burn you bastards burn!

AlienEyes's picture

Crooked Banks

1) All of this could fizzle out and become "Much to do about nothing".

OR

2) It could be "the straw that broke the camels back".

Going by past experience is probably a bad idea because when this blatant disregard for law and honesty finally crashes and burns, our past experiences with these rats will be exactly that, past. O'bozo is in a corner on this one. If he doesn't do anything about it, it will create a tremendous opportunity for both the Republicans and Independents to point out his disdain for both the law and fairness. If any of these three banks made big contributions to Obama and/or Hildabeast (or the Clinton Foundation), things could very rapidly get out of control and if there is one thing a control freak like Obama hates above all else, it's loss of control.

Enter Yellen. If there is even a shred of evidence that the FED gave a nod to all of this because of its hatred for PM's, Yellen is in deep trouble. She knows enough to start a pissing contest between the FED and the O'bummer administration (including the Justice Department, the Treasury Department and federal market regulators) as to who the guilty party or parties really are. 

Having said that, the recent meetings between Yellen and O'bozo could have been about trying to find a patsy to blame and how to throw said patsy to the dogs because sooner or later, somebody is going to the casa grande. If they don't prosecute somebody, the next administration will....unless the next president is "the dirty bitch".

My personal take on this is that it has the potential to be a great indicator as to how weak the administration's hand really is which can be accurately judged by how fast this whole thing snowballs and gets out of hand for the criminals running our country. Keep in mind that for the FED, these crooks were doing God's work by doing damage to PM's. I seriously doubt that God will see it the same way.

.

Soon, we will hear Cal's view on what the hell it all means and that could be the most interesting TFMR member post of the year.  smiley

Be as open minded as possible until we know more and are able to make a better informed guess as to where this will go. It could go by the wayside or it could lead to Leavenworth, Kansas. Personally, methinks people are getting damn tired of fines for the big banks and jail time for petty criminals.

AlienEyes's picture

Owtovit

Excellent post !

Please allow me to clarify one point....

This is how it works. The government sues on behalf of the victims. If they win, they keep the money on behalf of the victims. The victims themselves get tons of free sex while bent over a barrel. If they bitch about it, they get investigated by the IRS, fined, have their stack confiscated, beat up by Homeland Security and put in prison for "Resisting felonious assault"...which means more free sex with some big bastard named Tyrone who is pulling time for raping a Sasquatch.

Is this a great country or what?

angry

Owtovit's picture

@AE

and to think I was actually going to move to that gulag.....ahem, socialist paradise...

/s

looks like I am staying in rapefugee Europe that other socialist paradise across the ditch...

ps:You can keep your wookie banging potus.....we got a pig shagger..

AlienEyes's picture

@ Owtovit

It's tough all around.  sad

At least here you have more room to hide and you can purchase firearms in case you want to "lead it out" with the neo-SS instead of going quietly. Either way, you are still screwed.

J Siefert's picture

The Deutsche Bank Incident

I think this is part of what Yellen and Obama were talking about. Something big is yet to be sprung on us. Stand by your beds lads!

Long live Rob K.

ag1969's picture

Bankers & Finance Ministers Around The World Are Attending Emerg

What in the World is Going on with Banks this Week? Emergency Meetings, Banker Summits, Crashing European Banks, and the Worst Bank Reports Since the Great Recession

http://www.activistpost.com/2016/04/banks-this-week-emergency-meetings-summits-crashes-and-terrible-bank-reports.html

Coffee Black's picture

The power of the force

I am glad for Rob Kirby that this story has come out. At least I think it came out, because the only two places that are saying anything about it are Reuters and here. TPTB are probably going to just use the old Jedi mind trick to convince everyone that this never even happened. If it's not on the news and the masses never see it did it happen and does it even matter ? The great thing is that we are going to get to watch this play out. We really live in amazing times and most people don't even realize it. at times I am over come with this surreal feeling, like watching a train wreck in slow motion. I can see that it is going to happen, but can' t stop it. And the only real question is how bad is it going to be ?

Well let's see if this gets mentioned anywhere on a national level today.

ag1969's picture

Gold Backed Chinese Yuan, Real or Not? April 14, 2016

Safety Dan's picture

Heads up,  Remember this

Heads up, 

Remember this post? Senior DARPA Scientist Warns

Senior DARPA Scientist Warns of Widespread LETHAL ATTACKS Upon the Public Coming From Microwave Towers

Paul Batcho > April 8, 2016

8:08 PM 

Here's an excerpt from American Academy of Environmental Medicine

Electromagnetic and Radiofrequency Fields Effect on Human Health

.....

The fact that RF exposure causes neurological damage has been documented repeatedly. Increased blood-brain barrier permeability and oxidative damage, which are associated with brain cancer and neurodegenerative diseases, have been found.4,7,15-17 Nittby et al. demonstrated a statistically significant dose-response effect between non-thermal RF exposure and occurrence of albumin leak across the blood-brain barrier.15 Changes associated with degenerative neurological diseases such as Alzheimer's, Parkinson's and Amyotrophic Lateral Sclerosis (ALS) have been reported.4,10 Other neurological and cognitive disorders such as headaches, dizziness, tremors, decreased memory and attention, autonomic nervous system dysfunction, decreased reaction times, sleep disturbances and visual disruption have been reported to be statistically significant in multiple epidemiological studies with RF exposure occurring non-locally.18-21

Nephrotoxic effects from RF exposure also have been reported. A dose response effect was observed by Ingole and Ghosh in which RF exposure resulted in mild to extensive degenerative changes in chick embryo kidneys based on duration of RF exposure.24 RF emissions have also been shown to cause isomeric changes in amino acids that can result in nephrotoxicity as well as hepatotoxicity.25

Electromagnetic field (EMF) hypersensitivity has been documented in controlled and double blind studies with exposure to various EMF frequencies. Rea et al. demonstrated that under double blind placebo controlled conditions, 100% of subjects showed reproducible reactions to that frequency to which they were most sensitive.22 Pulsed electromagnetic frequencies were shown to consistently provoke neurological symptoms in a blinded subject while exposure to continuous frequencies did not.23

Although these studies clearly show causality and disprove the claim that health effects from RF exposure are uncertain, there is another mechanism that proves electromagnetic frequencies, including radiofrequencies, can negatively impact human health. Government agencies and industry set safety standards based on the narrow scope of Newtonian or "classical" physics reasoning that the effects of atoms and molecules are confined in space and time. This model supports the theory that a mechanical force acts on a physical object and thus, long-range exposure to EMF and RF cannot have an impact on health if no significant heating occurs. However, this is an incomplete model. A quantum physics model is necessary to fully understand and appreciate how and why EMF and RF fields are harmful to humans.26,27 In quantum physics and quantum field theory, matter can behave as a particle or as a wave with wave-like properties. Matter and electromagnetic fields encompass quantum fields that fluctuate in space and time. These interactions can have long-range effects which cannot be shielded, are non-linear and by their quantum nature have uncertainty. Living systems, including the human body, interact with the magnetic vector potential component of an electromagnetic field such as the field near a toroidal coil.26,28,29 The magnetic vector potential is the coupling pathway between biological systems and electromagnetic fields.26,27 Once a patient's specific threshold of intensity has been exceeded, it is the frequency which triggers the patient's reactions.

Long range EMF or RF forces can act over large distances setting a biological system oscillating in phase with the frequency of the electromagnetic field so it adapts with consequences to other body systems. This also may produce an electromagnetic frequency imprint into the living system that can be long lasting.26,27,30 Research using objective instrumentation has shown that even passive resonant circuits can imprint a frequency into water and biological systems.31These quantum electrodynamic effects do exist and may explain the adverse health effects seen with EMF and RF exposure. These EMF and RF quantum field effects have not been adequately studied and are not fully understood regarding human health.

Because of the well documented studies showing adverse effects on health and the not fully understood quantum field effect, AAEM calls for exercising precaution with regard to EMF, RF and general frequency exposure. In an era when all society relies on the benefits of electronics, we must find ideas and technologies that do not disturb bodily function. It is clear that the human body uses electricity from the chemical bond to the nerve impulse and obviously this orderly sequence can be disturbed by an individual-specific electromagnetic frequency environment. Neighbors and whole communities are already exercising precaution, demanding abstention from wireless in their homes and businesses.

Furthermore, the AAEM asks for:

  • An immediate caution on Smart Meter installation due to potentially harmful RF exposure.
  • Accommodation for health considerations regarding EMF and RF exposure, including exposure to wireless Smart Meter technology.
  • Independent studies to further understand the health effects from EMF and RF exposure.
  • Recognition that electromagnetic hypersensitivity is a growing problem worldwide.
  • Understanding and control of this electrical environmental bombardment for the protection of society.
  • Consideration and independent research regarding the quantum effects of EMF and RF on human health.
  • Use of safer technology, including for Smart Meters, such as hard-wiring, fiber optics or other non-harmful methods of data transmission.

Submitted by: Amy L. Dean, DO, William J. Rea, MD, Cyril W. Smith, PhD, Alvis L. Barrier, MD

https://www.aaemonline.org/emf_rf_position.php

This report was researched and provided by Paganini . Thanks!

And more on the subject... 

(http://www.powerwatch.org.uk/science/studies.asp)

Keg's picture

So what has changed?

So one bank and maybe a few others will pay fines, most of which will end up in the hands of "community organizers" to help fund the Democrat campaigns this year, a little to the Treasury, and nothing for the victims.  Just like the fines paid by the banks for mortgage fraud.  Nothing more than an expense of doing business to the banks.

It will continue to be business as usual.

Note that the banks named are not US banks.  Anything going after banks on silver must include JPM if it is really meaningful.

I truly hope I am wrong, but this will mean nothing.  There will be nothing more than a scant mention of this in the press.  You will still hear shills saying there is no manipulation.  And the beat goes on.

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