GATA Sues Fed, Demands Disclosure Of Gold Market Intervention Records

Tyler Durden's picture

Our friends at GATA have had enough of the Fed's, and other Central Banks' alleged (and with so much circumstantial evidence presented both at Zero Hedge and elsewhere, that in this case "alleged" is just a term only a lawyer could love) manipulation of gold prices, and have taken Bernanke's monetization, manipulation and money making unlimited liability company to task ("M4 ULLC"). We are overjoyed that yet another entity has followed in the footsteps of our dear late friend Mark Pittman in taking on the one organization that represents all that is irreconcilably broken with the current economic and financial system. We wish GATA much success, and hope that ever more wronged counterparties will seek remedies from the Fed's consistent and blatant wealth transfer from America's Middle Class to the uber-wealthy, Wall Street-originating oligarchy.

GATA notes:

GATA today brought suit against the U.S. Federal Reserve Board,
seeking a court order for disclosure of the central bank's records of
its surreptitious market intervention to suppress the monetary metal's

The suit was filed in U.S. District Court for the District of
Columbia and targets Fed records involving gold swaps, exchanges of
gold with foreign financial institutions. In a letter dated September
17 this year to GATA's law firm, William J. Olson P.C. of Vienna,
Virginia, (
Fed Board of Governors member Kevin M. Warsh acknowledged that the Fed
has gold swap agreements with foreign banks but insisted that such
documents remain secret:

The lawsuit follows two years of GATA's efforts to obtain from the
Federal Reserve and the U.S. Treasury Department a candid accounting of
the U.S. government's involvement in the gold market. These efforts
parallel those of U.S. Rep. Ron Paul, R-Texas, who long has been
proposing legislation to audit the Fed. The Fed has wrapped in secrecy
much of its massive intervention in the markets over the last year, and
Paul's legislation recently was approved by the U.S. House of

The Fed claims that its gold swap records involve "trade secrets"
exempt from disclosure under the U.S. Freedom of Information Act.

While GATA has produced many U.S. government records showing both
open and surreptitious intervention in the gold market in recent
decades (see, Fed Governor Warsh's letter is confirmation that the government is surreptitiously operating in the gold market in the present as well.
That intervention constitutes a huge deception of financial markets as
well as expropriation of precious metals miners and investors
particularly. This deception and expropriation are what GATA was
established in 1999 to expose and oppose.

Of course GATA's lawsuit against the Fed will take months if not
years to resolve. We think we have a good chance of winning it in
court. But we can win it outside court, and much sooner,
if the suit can gain enough publicity from the financial news media and
market analysts and prompt enough inquiry from them and from the
public, the mining industry, and members of Congress.

So GATA urges its friends to publicize the suit and to urge
journalists, market analysts, mining companies, and members of Congress
to join us in seeking disclosure of the Fed's gold market intervention
records. If enough clamor is directed at the Fed about these records,
the gold price suppression scheme will lose its surreptitiousness and

Zero Hedge has published enough declassified documents highlighting the Fed's desire to maintain unlimited control over the Gold market (and also here), that we are certain GATA has sufficient cause and in a just court of law system will see a ruling in its favor, especially since all GATA demands is openness and transparency- a key mission of none other than President Barack Obama, who not that long ago issued the following directive:

The Freedom of Information Act should be administered with a clear presumption: In the face of doubt, openness prevails..... [i]n responding to requests under the FOIA, executive branch agencies ... should act promptly and in a spirit of cooperation, recognizing that such agencies are servants of the public. All agencies should adopt a presumption in favor of disclosure, in order to renew their commitment to the principles embodied in FOIA, and to usher in a new era of open Government. The presumption of disclosure should be applied to all decisions involving FOIA.

Then again, with Obama himself beholden to both the Operating and Holding company of the Federal Reserve (we use metaphors sparingly but wisely), we are fairly certain that one simple phone call could abort the fair and equitable judicial process early on: after all even, gasp, Goldman bonuses could be at stake here. Which is why we urge readers to contact their Congressmen and Senators and demand that the same kind of transparency which is applicable to all, should most certainly pertain to the one private institution whose daily actions doom America to a fate far worse than mere sovereign default.

Full GATA lawsuit:


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Anonymous's picture


Would love to see you write more about this as well as the massive manipulation in the SILVER market that the CFTC does nothing about!!

Why do UBS and JP Morgan get away with holding such massive short positions in the silver market??

WHAT can be done about this?!!!!!

Silver prices should be so much higher baed on the fundamentals!!

Anonymous's picture

Best of luck to GATA in uncovering the giant PONZI and price supression schemes!!!

They will need it because the regulators are being paid to hide the truth.

Anonymous's picture

GATA, bitches!

Anonymous's picture

GATA, bitches!

Anonymous's picture

Thanks to Tyler and ZH for posting this. It amazes me how long this has been going on and continues to go...
but for how much longer?
It seems the game is up and should be over!

Rich Furry Flavor's picture

No doubt, GATA has a solid case. It will never see the light of day. At the moment it was posted on ZH, this story achieved its highest degree of notoriety. Throw it in the dust bin with Bloomberg's lawsuit. Ben and the FRB are above the law, untouchable. 

merehuman's picture

Rich furry,  way too early to give up, in fact we wont give up! To give up is to allow them to rape us without complaint or fight and that just wont do.

Anonymous's picture

You are a fool sir.

The first poster had it correct.

You poeple STILL think that there is a system to help you and protect you.

I escaped Soviet Russia, and NOW have the distinct dis-pleasure of having to relocate, again!

Fools, all of you. At least in Russia we all knew what reality was.

Your poor fools, don't.

At least I can say my country was better in one reguard, we all knew what was happening to us, even if we didn't speak of it.

Here, you could speak of it, but you DON'T EVEN KNOW WHAT IS HAPPENING TO YOU.

Irony, that in the land of the free and the home of the brave, you believe Pravda. For us it was like a sad joke.

chumbawamba's picture

Thanks for bringing it home.  Of course, you realize no one will listen to you?

I am Chumbawamba.

carbonmutant's picture

It all depends on the Judge.

Get it On!

Psquared's picture

Yes it does, and "judge-shopping" is a political tool. This case will be assigned (by the Chief District Judge of DC) to the most friendly to the government Judge they can find. Given this is DC most are probably friendly ... very friendly.

This ought to brighten your day.

Here's a link to all the DC Judges and Magistrates.

Not one has any experience with economics as far as I can tell. I.E., they will let the government lawyers run all over them.

pidge's picture

perhaps a bribe for some justice is in order?  Duh!

come on people, get with the program!


Anonymous's picture

I'm not familiar with the DC Circuit, but usually there is a random lottery system in assigning cases to avoid allegations just like yours, Psquared. Have you worked with the Chief District Judge in DC?

Anonymous's picture

Whatever happened to the IMF's review of the Federal Reserve?,1518,562291,00.html

tom a taxpayer's picture


Bravo GATA! 

Suing the Fed is brilliant. There are many ways for GATA and taxpayers to get justice.

First, this puts the Fed and Ben on notice that GATA and others are not going to take it anymore.

Second, it sets in motion the sweat glands around the white collars of Ben and the Fed so that they get nervous, begin to second guess what they do, and start making mistakes like deleting e-mails, shredding documents, soliciting secret pacts to hide the true record, etc.

Thirdly, it sets in motion the sweat glands around the white collars of Timmy G and all the other perps at the Treasury, 85 Broad Street, 399 Park Avenue, and other dens of thieves. These slime-balls know how one thing leads to another...civil lawsuits can expose crimes that lead to criminal prosecution. These perps also get nervous, begin to second guess what they do, and start making mistakes like deleting e-mails, shredding documents, soliciting secret pacts to hide the true record, etc.

Fourthly, one or more of the white-collar softies will crumble like feta anticipation of the GATA suit or worse, a criminal prosecution...and will fall into the lap of state or federal prosecutors.

Fifthly, it only takes one prosecutor to see the Racketeer Influenced and Corrupt Organizations Act (RICO) case and begin the prosecutions that bring down the entire criminal enterprise responsible for committing the greatest financial crimes in U.S. history.  This is a target rich environment, and the criminal activities (fraud, Ponzi schemes, extortion, looting of treasury, cover-ups, etc.) are continuing today. So the investigation and prosecution can begin anywhere and follow the trail, with Countrywide, the mortgage industry and the appraisers or Freddie and Fannie or Citi and the big banksters or with Goldman Sachs and other Wall Street investment banks and brokerages or the rating agencies or AIG or with the federal co-conspirators at U.S. Treasury, SEC, OTS, and the Federal Reserve or with Hank "the mole" Paulson, Ben "the bag man" Bernanke, Tim "the patsy" Geithner, or the members of Congress who took money to facilitate the criminal enterprise.

Bravo GATA!


whacked's picture

Well ... when has GATA succeeded in any prior legal battles with the Fed?


None .. and the posting here may be the maximum exposure this case will receive.

VegasBD's picture

Well then I would call this progress. Why such a negative tone. Do something to help this, anything.

Speaking of, what can I do to help GATA? Sick of calling congressmen...

whacked's picture

"what can I do to help GATA?"



Go make a donation.

merehuman's picture

Tom, you made my day! Thanks a bunch

Bubby BankenStein's picture


I agree, the more attempts to pierce the veil of secrecy, the better.

Eventually the truth behind these issues will come out in it's putrid glory.

The perpetrators feel the heat and are shitting Old Chicago Bricks.

The more they obfuscate and evade, the weaker they become.  Their demise is all but a certainty.  We have pictures of them fucking the dog.

JohnKing's picture

Yep, even when unsuccessful, these attempts are in their own way successful as they point to the secrecy that the Fed maintains and protects, it's just one more cut in the thousands that should come.

ACP5gTG's picture

Yeah . . . and it keeps Mr. Holder busy putting out fires, thus limiting the amount of mischief he could otherwise cause.


Al Gorerhythm's picture

Ahh, come on Bubby. What's your problem? Will you just drop it! One little dog and you're labeled for life! 

chumbawamba's picture


I'm sorry but I find that rather naive.  Let me tell you how this is going to play out.

Everyone will push this, calling their reps and giving them an earful, demonstrating, making fiery speeches and online protests, a lot of noise will be made, and just when it looks like something's going to break, a backroom deal will be struck and this thing will somehow quietly go away.  It always does.  This is how things are in America.  There are no more good guys.  The people with the power at Justice will quash any investigation.  We've already seen this.

Either way, in the end, it'll be resolved by these three words: "executive branch agencies", of which the Fed is not.  Check Obama's words again, that tricky bastard.  He is speaking very intentionally.

I am Chumbawamba.

brandy night rocks's picture

In related news, citizens of New Jersey petitioned Paulie Walnuts to investigate and intercede to stop Christopher Moltisanti's "noncompetitive activity" and alleged "price-fixing" in local solid waste disposal and enterprise security markets.  Surprisingly, no action was taken.

drbill's picture

Call me cynical, but if the Fed hadn't been keeping gold artificially low I, and many others, wouldn't have been able to buy gold for the past several years.

So, I say let them continue to push gold down because they will eventually lose this game. The perverse benefit is that they will enable others to buy that very thing that the Fed hates above all others.

I think I'm getting myself dizzy again...

Anonymous's picture

I would argue that the credibility of every central bank in the world relies on gold not going up too much. If gold goes to $2,000 - $4,000/oz. fiat currencies as an asset class are dead. BTW, the US mint announced last week that they are no longer selling gold coins because.....there's too much demand!

Anonymous's picture

Dr. Bill --

I know! right? The Fed's (openly stated) official policy enabled me to buy twice or three times as much yellow fellow as I might otherwise have been able.

When it suits them, their "policy of price suppression" will "fail", i.e. they'll be fully positioned to benefit from its colossal rise, and we shall see a monumental correction. GATA's motion would serve only to bring to light a few of the Fed's surreptitious activities.

A dyed-in-the-wool conspiracy guy will claim that this motion is well-timed to scuttle the Fed's Comex suppression just as they were going to abandon it and let gold shoot for the stars, even overshoot, as the Powerz are situated fully to advantage of gold's pinnacle. They'll "cry uncle".

No, let all of us rest assured that the Powerz are well-situated to benefit from a moon shot for gold; it's all in the timing, but a "when" and not an "if". Hey, silver too!

Anonymous's picture

True, but.... by keeping the price down locally (in the US), the Fed has actively encouraged US citizens to believe in the irrelevance of a means of monetary saving encouraged across the rest of the world. The net effect is a country that by comparison has empty coffers, whose citizens are entirely dependent upon the actions of the Federal Reserve as to the future value of their savings.

The lying and manipulation may have benefited the rare individuals who seek their own truth, but those same individuals will get to live in a country that falls that much harder when the time comes.

Benefits do no outweigh the price being paid, IMHO.

VegasBD's picture

Yea right. As much as we/I hate the Fed, ya gotta say thanx for keeping prices so low before SHTF so I can afford to keep buying more with my dollars from my job. If they werent constantly attacking the gold price, I'd have to face the fact that I dont really make that much money (priced in gold). But till then Im a keep up the six figure american dream lifestyle.   ?


chumbawamba's picture

Gold doesn't grow on trees, man.  Ya gotta dig it out of the mountain.  That costs money.  If producers can't get a fair market price for their product then they aren't going to produce.  Now granted, many mines are profitable under current prices, but some (thanks to general stupidity, and I'm talking at YOU Barrick) are not.  If the price of gold were left up to the market, there would be much more production and hence much more supply.

Let the open market speak.

I am Chumbawamba.

Anonymous's picture

This has to be connected to the Gold stored under the WTC and 9-11-01.

Anonymous's picture

Just spinning on: (did the real gold get "privatized"?)

1. Fake gold in Fort Knox - swapped real Gold relocated to World Trade Center.

2. 9/11 as greatest gold-robbery of all times. Cover up for second relocation.

3. And the huge Gold transports leaving New York by end of November? (see WSJ.) A convoy of HSBC (Rothchild) gold-trucks never seen before as latest relocation to (let´s guess) South America?

4. 2014: After the big American revolution of 2012 the distinguished House of Rothchild offers the new leaders a "cheap" gold-lease to back up the new American currency (as happend before in American history).


tip e. canoe's picture

where's Stuart Smith?

"No one knows whatever happened to Stuart Smith. After his offices were raided he took "administrative leave" from the NYMEX and he has never been heard from since."

Anonymous's picture

Somebody greased the right palm and the whole story went byebye. As to what happened to Fulano, who cares? He's just a pawn. Just look and see how the whole story evaporated.

Has Rippoffchilds stayed out of the gold trading business? The issue had wheels once upon a time.

Anonymous's picture

My understanding is that the gold price is "fixed"daily by Rothschilds in London - or is that just historical?

Rainman's picture

When the Supreme Court ( Ginsburg ) declined to hear the Chrysler bondholder appeal in May '09, I pretty much threw in the towel on basic contractual justice coming from the federal judiciary.

Even if the Fed loses at the district and appeals levels, they'll win at the Supreme Court level. The Fed is entrenched in ALL asset manipulatons, ultimately setting up the fucking of every taxpayer or investor in their path. At ZH we go on and on about it.

So what makes GATA so special ??

The only prize in this is the opening of a few windows to their machinations ...... all of which the MSM will promptly ignore.

WaterWings's picture

Yeah, I hear ya. This isn't 'our' playground - we don't make the rules - nothing but bully's: on the swings, slides, and even damn tetherball. Bastards have just about taken over everything.

Anything other than the official Fed version is just conspiracy theory to the public. Maybe GATA's just a front to sell t-shirts. What a business model!

waterdog's picture

And to quote the ever present, lying, insider trading diva, Martha Stewart, this is a good thing.



Anonymous's picture


Hey check this out:


Anonymous's picture

they should seek class action

carbonmutant's picture

A couple of green shoots later and you could have a real fantasy about the outcome of all this.

lynnybee's picture

yup, R I C O ...........get 'em under R.I.C.O.

Implosion Therapy's picture

Per The Fed.."(insert evil laugh here) Your puny mortal laws to not pertain to us !"..for precedent see Mere mortals v Masters of the Universe

masterinchancery's picture

GATA should have a good hideout if this case isn't dismissed--the Fed is a vindictive enemy.