Deutsche Bank Confirms Silver Market Manipulation In Legal Settlement, Agrees To Expose Other Banks

Tyler Durden's picture

Back in July of 2014, we reported that in an attempt to obtain if not compensation, then at least confirmation of bank manipulation in the precious metals industry, a group of silver bullion banks including Deutsche Bank, Bank of Nova Scotia and HSBC (later UBS was also added to the defendants) were accused of manipulating prices in the multi-billion dollar market.

The lawsuit, which was originally filed in a New York district court by veteran litigator J. Scott Nicholson, a resident of Washington DC, alleged that the banks, which oversee the century-old silver fix manipulated the physical and COMEX futures market since January 2007. The lawsuit subsequently received class-action status. It was the first case to target the silver fix.

Many expected that this case would never go anywhere and that the defendant banks would stonewall indefinitely: after all their legal budgets were far greater than the plaintiffs.

Which is why we were surprised to read overnight that not only has this lawsuit against precious metals manipulation not been swept away, but that the lead defendant, troulbed German bank Deutsche Bank agreed to settle the litigation over allegations it illegally conspired with Bank of Nova Scotia and HSBC Holdings Plc to fix silver prices at the expense of investors, Reuters reported citing a court filing by law firm Lowey.

Terms were not disclosed, but the accord will include a monetary payment by the German bank.

It goes without saying, that there would have been neither a settlement nor a payment if the banks had done nothing wrong.

According to Reuters, 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.

As noted above, investors had 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.

None of this will come as a big surprise to readers, most of whom have been aware that this took place for years.

But wait there's more.

In a curious twist, the settlement letter reveals a stunning development, namely that the former members of the manipulation cartel have turned on each other. To wit:

“In addition to valuable monetary consideration, Deutsche Bank has also agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement. In Plaintiff’s estimation, the cooperation to be provided by Deutsche Bank will substantially assist Plaintiffs in the prosecution of their claims against the non-settling defendants.”

The full shocking letter can be read here:

Since this is just one of many lawsuits filed over the past two years in Manhattan federal court in which investors accused banks of conspiring to rig rates or prices in financial and commodities markets, we expect that now that DB has "turned" that much more curious information about precious metals rigging will emerge, and will confirm what the "bugs" had said all along: that the precious metals market has been rigged all along.

Finally, we'll just remind readers that the US commodity "regulator", the CFTC in 2013 closed its five year investigation concerning allegations that the biggest bullion banks manipulate silver markets and prices.  It proudly reported in September 2013 that it found no evidence of wrongdoing and dropped the probe. This is what it said:

The Commodity Futures Trading Commission (CFTC or Commission) Division of Enforcement has closed the investigation that was publicly confirmed in September 2008 concerning silver markets. The Division of Enforcement is not recommending charges to the Commission in that investigation. For law enforcement and confidentiality reasons, the CFTC only rarely comments publicly on whether it has opened or closed any particular investigation. Nonetheless, given that this particular investigation was confirmed in September 2008, the CFTC deemed it appropriate to inform the public that the investigation is no longer ongoing. Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.

In light of this confirmation that the CFTC's probe was "lacking" perhaps it is time for the so-called regulators who at the time was headed by ex-Goldmanite Gary Gensler (and assisted by "revolving door" expert and HFT lobby sellout Bart Chilton) to reopen its investigation?

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RayKu's picture

Imagine that. ...

Cognitive Dissonance's picture

"Agrees to Expose Other Banks"

Would that include the central bank(s) and their various bullion bank minions?

<Or will this simply be an agreement that preserves the status quo via a limited hangout?>

Killtruck's picture

Jamie! Get your cufflinks! THE CUFFLINKS!

SWRichmond's picture

Finding child pornogtraphy on DB computers in 3...2...1...

camaro68ss's picture

When silver limits up today, I'll believe it.

tmosley's picture

So, just who is included in this class? These fucks have cost me quite a lot of fiat dollars.

Are silver miners going to be compensated?

Interesting potential implications if people get off their ass and pursue this.

ATM's picture

Maybe that little shit Bart Chilton will get his comeuppance?

SoilMyselfRotten's picture

Don't know why they keep coming out with these stories. If they are acting on behalf of govt they arent going to have any problems, period. A slap and a wink.

mtl4's picture

The letter is addressed to a court house in NYC, I'm sure that would be a great place to handle banks involved in fraudulent activity!

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) JRobby Apr 14, 2016 10:07 AM

The lawsuit, which was originally filed in a New York district court by veteran litigator J. Scott Nicholson,

Correction: "The lawsuit, which was originally filed in a New York district court by soon to be dead from an accident with a nail gun veteran litigator J. Scott Nicholson,

RAT005's picture

Must be time for the government to prefer silver prices go up. Good news for all of the stackers that took advantage of the manipulated prices.

Pinto Currency's picture



The problem is with the LBMA itself and the banks simply use this paper metal to manipulate gold and silver.

The LBMA's problem will not be repaired going just after the banks:

MagicHandPuppet's picture

And thus begins the series of smaller and smaller sacrificial lambs who will get their heads gently placed on the chopping block... with longer and longer intervals in between.  If anyone important genuinely gets snagged in a dragnet, they'll just bury it with fear mongering headlines.  Same as it ever was.

eatthebanksters's picture

Now that the private sector has done the work, do you think the DOJ and Loretta 'the bankers friend' Lynch will indict, prosecute and jail some seniro banking execs for this?  Before an election?  Not on your fucking life!!

manofthenorth's picture

IF and when ANYONE goes to FUCKING JAIL for a long time,

then and only then will I believe that the worm has turned.

Lore's picture

Agreed. It's all fluff until somebody actually does hard time in a federal pound-me-in-the-ass prison.

manofthenorth's picture

Interesting that the GSR topped March 1st at near 84 to 1 and now sits at 76.5, down 6.14% in just the last 4 days.

Perhaps the herd of sharks has shifted to eating each other since all the minnows have been devoured and us bottom feeders keep accumulating the physical in ever increasing RECORD amounts.

Not My Real Name's picture

The rule of law is dead. Those of you waiting for justice to be served will have to wait for the revolution. 

manofthenorth's picture


If you really can taste gold and silver, I have a standing job opening for you at the mine.

Lugnut's picture

I heard that the CFTC is appealing the ruling, and declared in a press release that they already extensively investigated the issue, and found no evidence of rigging.


Dicey's picture

Means nothing as nothing has changed, they still fix the price.

MillionDollarBonus_'s picture

Sorry to disturb your silverbug echo chamber, but a settlement is NOT an admission of guilt. In all likelihood, Deutche Bank has far more important things to do than fight a long court case with paranoid silverbugz, especially when they're undergoing a major restructuring. The silver bubble popped a long time ago, and the mature thing to do is to admit you were wrong, rather than inventing an endless string of conspiracy theories to justify why the market didn't go in the direction you predicted it would. The first step to solving a problem is to admit that there is one, and silverbugz desperately need to come to come to terms with their crazed silver-buying addiction. It's costing them an enormous amount of money, and blinding them to other much more attractive investments such as equities and bonds. 

Hail Spode's picture

Since I assume you are satire when I enjoy one of your posts, I down vote it. On the assumption that you love it when we hate you.

bobsmith5's picture

Yup, thats why he is here.  He does indeed love it when we hate him.  His real life's purpose is to be hated don't you know?


MDB - satire is an art form. You are a hack, sir, not a true satirist.

You are a classy guy, cherry picking statistics like you pick your nose - really gross in public, especially when you eat it in a face plant on the tarmac

Metals are a longer time line. What is a Liberty twenty dollar gold piece worth today versus the original value ?

What is a Morgan silver dollar worth in relation to funny bux today ?

My shit has been going up since 1964.

Catch up to me in fifty years, and we will compare net worth, short timer.
I have over five thousand years of monetary history on my side.

What's in your wallet ?

Unicorn farts, skittle shit, androids dreaming of electric sheep, EMP's, and the government take over or outlawing of all digital currencies - except their own.

As for Dooshe Bank and friends, a State Of The Union Address.

America has been getting fucked by banks and financial institutions, eh ?

Fuck. You. You assholes. Fuck your guilt peddling too.

Reality is, America's political leaders, in cahoots with the military industrial complex, Wall Street, the .00001 percenters, and their lapdogs in media, have fucked the country right into the ground, burned off the fields, salted them, killed off everything living, and told folks it was normal.

GMO's, pesticides, herbicides, chemical fertilizer, city sewage water irrigation, growth hormones, antibiotics in your food is normal. Along with too much salt, sugar, and hydrogenated fat in your diet thanks to convenient processed fast foods. Death in every meal, legal death, sold at a profit.

Alcohol addiction was normal. Kills off more people than anything else in the past as well as present.

Cigarettes were normal. Best killer ever before becoming socially outcast as a nasty habit that causes cancer. Now you can vape nicotine in polypropylene glycol, because that's gotta be good for you, right ?

Drugs are normal. Well, just pharmaceutical ones. They kill better than traditional ones. The rest are illegal so an entire industry of policing, incarceration and criminal activity can profit from the destruction of human potential.

War is normal, because it profits the few, and kills better than alcohol, cigarettes, and drugs put together. It is more profitable, too.

Fuck all of the powers that be that sold you a life that is living death.

And, fuck all the media for profiting by selling you this life of shit that is drummed into you from birth as being the reality to live. Thanks, Tee Vee, radio, newspapers, internet, thanks a fucking lot.

And, media motherfuckers, thanks for trying to assign blame to anyone except the perpetrators of the greatest theft, and " legitimate murder " of the greatest number of people in modern history.

FUCK all of you with a baseball bat wound up in barbed wire, covered in flaming napalm.

ersatz007's picture

One of the things I find refreshing about MDB's blog/site is that he has the good sense to allow only those comments that agree with his perspective.  This clearly helps to create a sense of uniformity and enables one to digest the information much easier without having to muck about with opposing points of view.  I, for one, am too busy to think for myself and MDB's blog does the thinking for me.  Bully!!! ~ as MDB's hero, Teddy Roosevelt, would say!


bobsmith5's picture

Oh My God MDB, where in hell is the url for your site that you always post with your comments? We have to know so we can go there and find out why we should all stop being paranoid and sell our silver.  God forbid we should be deprived of your vast monetary wisdom.  People really don't think you are for real, until they go to your website to find out there really are people as stupid as you.

MillionDollarBonus_'s picture

My latest article is on raising the minimum wage, and the related economic literature.

bobsmith5's picture

LAMO, I think I have the honor of being the very first to elicit a response from the great MDB who has just posted the missing url in his comment at the top of this thread. 

I don't think one should answer point by point his lame comments as that tends to lend credence to his arguments which always comes from a false premise.  To the well informed rational fact based mind, MDB's comments are always just a big joke and a good laugh.  You will never get a responsive argument from MDB to any rebuttal you may post in response to his nonsense. What he really wants is your down vote and your derision.  He wants your hate so give the poor bastard what he wants.  It feels so good to hate MDB anyways, don't it?  It's like having Hillary herself posting the comments. What could be better than that?

Argenta's picture

I'm on to you now.  You sir, are quite the master of satire.  No one who can string words together in the reasonably entertaining manner you do can believe what you post.  I'd expect a person who subscribes to what you profess would be drooling upon themselves, and maybe even as deranged as a university sociology professor.  But that's not you!


Yen Cross's picture

  I read the accredited times when I'm constipated.

Bunghole's picture

I print a hard copy of it when I have to poo since nothing will remove a dingelberry better than that shit rag.

Wow72's picture

You have no fucking clue how useful silver is, therefore you have no fucking clue about investing.  Thats why anyone who does gets caught up with Silver because obviously it is more precious than its price especially when its coming out of the ground 10:1 to gold and new uses are invented each year for it.  Silver is the exception. Its a great long investment.

There is no way the price of silver has been "Propped" UP.   Its been kept down for industry, but the catch is its more rare than anyone wants to admit and its properties are very unique. You need to look at the WHOLE FUCKING PICTURE.  Silver is it, pretty soon every one will want it as money too!  I love silver.  Pay attention because its extremely useful shit. Governments want it, Hospitals want it, Everyone fucking wants it because its useful.  The silver to gold price ratio is in the high 70's the prices are out of whack.

Gold could be a little high, but with current economic and political conditions and a worthless dollar, I think it should take off like a ROCKET! True Value is going to be in high demand and is already.  I would highly doubt the metals are overvalued, its the dollar thats over valued although that could continue.

Klaus Daimler's picture

Weak sauce, MDB, until you wrote "... such as equities and bonds".

Impressive finish; nice work.

The Merovingian's picture

And once again, no one goes to jail for fraud or theft. Someone up above said they wouldn't be satisfied unless Ag limits up today, I won't be satisfied until I start seeing perp walks in mass quantities and jumpers hitting the sidewalks by the dozens all over the world. Burn this fucker down already!

Mr. Universe's picture

There it is in a nutshell, total lack of regard for the law. We need a financial Dredd. How they must laugh at the fines, paid off by printing fiat from thin air and charging us the interest.

giovanni_f's picture

The evil Germans are at it again. Volkswagen, Deutsche Bank trying to drag innocents like JPM and Government Motors in the mud.

Pinto Currency's picture



The problem is with the LBMA itself and the banks use this paper metal to manipulate gold and silver:

Manthong's picture

It’s just a good thing JPM isn’t a part of this deviltry.

AllMightyDollar's picture

Exactly - Where is JP Morgan in this mess??

CheapBastard's picture

They only jail little people.  Obama, Holder and Lowretta, as do their European counterparts, have a perfect record of indicting exactly ZERO financial criminals.


Even China has indicted over 1,000 fincnail crooks in the past five years and executed many of them already.


That's odd.

Oh regional Indian's picture



Fact, Silver will outpace gold as the investment of this century, or at least pre full blown ww111 (unless we can stop it)....

Well, here is some conspiracy theory for you...a little bit of everything...

Oh regional Indian's picture

Cheers ON, do drop me a line....long time....

PTR's picture

It's Zen Gardner, so upvote.

Argenta's picture

Ultimately the proof is in the pudding, or in this case the price.


Slomotrainwreck's picture

In light of this confirmation that the CFTC's probe was "lacking" perhaps it is time for the so-called regulators to reopen its investigation?

Oh Yeah! Reopen the investigation. Then, 4 years later, we will find out that there was indeed, NO irregularities.