Deutsche Bank Admits It Rigged Gold Prices, Agrees To Expose Other Manipulators

Tyler Durden's picture

Well, that didn't take long.

Earlier today when we reported the stunning news that DB has decided to "turn" against the precious metals manipulation cartel by first settling a long-running silver price fixing lawsuit which in addition to "valuable monetary consideration" said it would expose the other banks' rigging having also "agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement" we said "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."

This was confirmed moments ago when Reuters reported that Deutsche Bank has also reached a settlement in US litigation alleging the bank conspired to fix gold prices. In other words, hours after admitting it was rigging the silver market, it did the same for gold.

Some more headlines:

  • Reaches settlement in U.S. litigation alleging it conspired to fix gold prices.
  • Plaintiffs' lawyers, in filing, say Deutsche Bank has signed a settlement term sheet
  • Plaintiffs' lawyers say are negotiating formal settlement agreement that would be presented for judge's approval later
  • Plaintiffs' lawyers say settlement contemplates a monetary payment by Deutsche Bank
  • Gold settlement follows similar accord involving alleged silver price-fixing that was disclosed on Wednesday

Most importantly, as the actual settlement reveals, Deutsche has agreed that in addition to once again providing "valuable monetary consideration" which will be paid into a settlement fund, that like in the silver settlement it will provide "cooperation in pursuing claims against the remaining Defendants."

And with that the floodgates open.

Here is the full settlement letter:

* * *

As a reminder, this is what we reported just hours ago on an identical settlement involving Deutsche Bank admitting to also rigging silver:

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

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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Factotum's picture

I could not find an actual number.   Probably a state secret.  But I suspect that the rigging was on the order of a few cents per oz for silver, and maybe a dollar or two for gold.  I notice that you, in your wisdom, failed to tell us by what amount these prices were rigged.   Maybe this is a situation that if you told us then you would have to kill us.  More likely it is that if you told us, then --- well you would be embarrassed.    I mean your audience would say --- seriously the big banks manipulated the price by 3 cents an oz?    

 

So your silver bugs, who have 10K oz or about 16K dollars of gold would now be two or three hundred dollars richer or poorer depending on if they were buying or selling.   But that is a rounding error.   the same applies to gold bugs.

nope-1004's picture

Anyone watching that has any basic financial knowledge knows, it's only the government led media and bankers that lie about it.

 

Looney's picture

First Silver, Now Gold

I hope they didn’t rig the Tungsten Market.  ;-)

Looney

ParkAveFlasher's picture

Good thing they don't rig stocks!

nope-1004's picture

So does this mean we can formally dismantle the CFTC, since they aren't doing their job?

How is it that the CFTC's own investigation does not reveal any wrongdoing until Douche admits doing so?

.GOV is a total joke.

Killtruck's picture

Well shit, that must mean that they've stopped, right?

*checks current gold action*

HMMMMM. 

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Killtruck Apr 14, 2016 12:34 PM

Wow... Look at the prices take off (down) based on this news that should drive prices up.

GadExp's picture

The curious thing is why they are admitting it now.  The power people are making their move.

 

 

Get your umbrellas ready.  The helicopter money is days away.  You don’t want any of those notes actually touching you!

greenskeeper carl's picture

and both are down today. So since they are going to probably have to pay collasal fines, does that mean those of us who have lost money on miners get money from them, or does the money just go to the fucking government to waste?

 

(rhetorical question, I know what the answer is)

 

And of course both gold and silver are down on the news....

Pairadimes's picture

We are going to need more lampposts.

SILVERGEDDON's picture

I guarantee you that they can't do much dog fuckerey to the copper jacketed lead market.

Except, maybe, absorb the losses.

macholatte's picture

does that mean those of us who have lost money on miners get money from them

 

on my wall I have the check I got after a mega-million dollar class action law suit settled...

it's $0.67

 

the lawyers made a lot.

Son of Loki's picture

After Lowretta finishes arresting the climate change deniers  ....

Oracle 911's picture

Guys, nobody asked the main question:

WHY NOW THEY ARE DISCLOSING THE OBVIOUS?

Four chan's picture

havent all the rothchilds stepchildren admitted this a dozen or so times already?

forexskin's picture

Bob Moriarty at 321gold is going to have an aneurysm eating crow on this one.

philipat's picture

And Trader Dan and a lot of other manipulation denyers.

Lore's picture

What was actually disclosed?  Can someone please post the evidence for all to see?

philipat's picture

Before we get too excited, the Fix is not the real problem and we should note that JPM is NOT mentioned. The real problem is the way the Comex is operated, allowing an infinite number of paper Gold contracts to be conjured out of thin air without any physical collateral. The derivatives markets were set up this way deliberately to allow Central Banks to manipulate PM's through the Cartel. So, IMHO, unless the Comex changes its rules (Spoiler alert: the risk of that happening is zero) nothing is going to change. We all now understand HOW Comex is used to manipulate prices in what is, importantly, a perfectly legal way within existing regulations. And that's exactly how the Fed wants it to remain.

Incidentally, now we know what Rob Kirby knew!

Oracle 911's picture

If the public admittance is not disclosure, then what is it?

 

turnoffthewater's picture

I have one of those too. It's called Worldcom

Conax's picture

Oh Carl, the gubs won't waste the money- They'll use it to short silver!

What's on tv?

jefferson32's picture

If we assume the settlement couldn't have been reached without the accord of the German government, this is perhaps a way of getting back at the zio-anglo axis (see Germany's furor at the prospect of helicopter money).

opport.knocks's picture

Correction, i believe you meant "Germany's Fuhr at the prospect of..."

Slomotrainwreck's picture

And of course both gold and silver are down on the news....

irony - a state of affairs or an event that seems deliberately contrary to what one expects and is often amusing as a result.

Edit Deutsche Bank said buy gold 1-1/2 months ago.  I wonder why.

what's that smell's picture

this "revelation" is another strip tease, a panama papers part deux....

it was those facist nazi deutsche bankers that did it!!! [icelanders brazillians putin's buddies assad's catamite et cetera]

the head of the snake is the US federal reserve, not the teutonic anus.

stoooooooooooopid.

Anasteus's picture

And now, when DB finally admitted gold/silver rigging practice and agreed to cooperate with the plaintiffs on exposing the other banks' rigging on all counts, the gold/silver rigging can smoothly continue unabated.

Kenlona's picture

I was thinking the same thing. The IMF and IBS are going to use the central bank's as scapegoats when they initiate the collapse. They'll say see the old system didn't work now let us fix it for you and of course all the politicians are already blackmailed or paid off so they'll jump right on the one world currency bandwagon

philipat's picture

You forgot to mention that both the IMF and BIS have issued stern warnings of the problems is recent times for the very purpose of getting it "on the record" so they can say "we told you so, but nobody listened".

bob_bichen's picture

"It is tough being a cynic these days.
It is so much work to keep up!"

––Lily Tomlin

Big Corked Boots's picture

"The problem with the rat race is, even if you win, you're still a rat."

- also Lily Tomlin

Strelnikov's picture

"I worry that the people who thought up Muzak are thinking of something else." - LT

SILVERGEDDON's picture

Bob - the quote is good, and the bold script is artsy, but you don't have enough fuck going on.

More colorful, long winded descriptive phrasing helps as well.

It also has a calming effect on your own personal space.

For example :

" Those Snot slinging fall down drunk rainbow skittle shitting unicorn child molesting rama lama ding dong Klingon cocksuckers from Uranus hard at work ramming financial cock up the muppets so hard they all look like fucking finger puppets !

May they all die in a fire caused by ramming barbed wire covered baseball bats covered in flaming napalm up their asses while they are being frog marched into the business end of an airport snow blower running at top speed. "

I hope this helps you with your next colorful description of Bankster Piracy.

ersatz007's picture

i think you forgot 'reptilian' - it's pretty important. 

SubjectivObject's picture

Howabout just living with 3rd degree burns over their entire body?

TRM's picture

You have obviously watched A Christmas Vacation with Chevy Chase one too many times.

Well done. I saute you! I mean salute you!

Absalon's picture

It could be that they admitted manipulating the price higher.  More likely the admission is that somedays they pushed the price up a little and some days they pushed it down a little.   Afterall, it would be very hard for anyone to hold the price down below a market clearing price or up above a market clearing price for any extended period of time (and there would be no point)

 

More likely this law suit and the settlement will convince any banks that have been making a market in gold to exit the business entirely and liquidate their trading holdings.

 

 

raeb's picture

They manipulate up and down, the point is when they do this the Club knows and benefits while the rest of us poor suckers pay the bill.

Absalon's picture

They manipulate up and down

 

So buy and hold and don't worry about it.  Try to catch a downswing if you can.  Or just stay out of that market entirely.

 

zeropain's picture

not if the rigging happen in 2008-2013.  I would think they rigged it and bought AGQ to make go parabolic.  man if you shorted AGQ at the top 750, it is now at 35.  PMs will crash with everything else.  but goldminers will be my first purchase after the crash.

The Pm bugs still dont realize that gold 1900 and silver 50 was the top.  that was a hyperbolic move already happened.  china is done with gold, they need to feed people who are out of work cus US consumer is maxed on credit again after 7yrs.  deflation time.

on a possitive note maybe Blyth Masters will be implicated in the rigging.

Troy Ounce's picture
The five , sorry six stages of dying by Kuebler Ross
  1. Denial
  2. Anger
  3. Negotiation
  4. Depression
  5. Acceptance
  6. Admission

 

Kirk2NCC1701's picture

+1.  Ah, good old Elisabeth Kuebler-Ross.  

Her books on Grieving are so famous, that they are mandatory reading in Social Work and Medicine at quality universities.

How many people knew this?  See, this is why you come to ZH: Aside from the Key developments in Alternative News, and Fin. Analysis, you come for the Comments.  The Comments is where you find occasional nuggets, if you look for them.

ack's picture

Cuz only jews know how to grieve. Just one more thing they hafta shove down goy-muppet throats...

ebear's picture

So, marrying a Jew makes one a Jew? Is that how that works? Or did she convert? Can't find any reference to that, but it raises an interesting question: Is a convert a real Jew? Speaking of real Jews, if my parents are Jewish but I reject the religion, am I still Jewish?

What if I attend the synagogue solely out of respect for my parents? Do I have to declare my apostasy or be deemed a Jew simply because I appear in the presence of Jews? What if I decide NOT to attend, and everyone knows why? Does that make me a "secular Jew?" What if I convert to Christianity? Am I still a Jew? Should I be expecting the Spanish Inquisition?

For arguments sake, let's suppose I'm a Christian, and my father's friend who attends the same church offers me a job at his firm. Is there something wrong with that? Should I decline because it looks bad.... you know, Christians helping other Christians?

What about friends? Can I have Jewish friends? What about work? Is it OK to work for a Jew? (I actually have, and it was a pretty good job)

Help me out here, because I'm really confused. I know what a Zionist is, but I'm having trouble connecting that to Jews in general.

Herd Redirection Committee's picture

Its a good question.  Is whats good for Zionists and Israel (segregation and tremendous in-group co-operation) good for everyone else, too?  Of course if white people (non-Jews) do it, its racist...

If you reject the religion, you will be termed a 'self-hating Jew'. 

A convert is not a 'real Jew'.  Jewish lineage (as considered valid by Jews) flows through the female line, so if your mother was not Jewish (ethnically) you are not Jewish.

The real problem of course are Zionists and assorted Kabbalists.

gonetogalt's picture

Serious tribesmenare perfectly happy with 'soft' or less than dedicated Jews intermarrying with Goy and leaving the tight bonds of the tribe.

It's understood that serious Jews can't interact well with Goy, so it's considered necessary to have 'buffer' of tolerable, secular tribesmen to conduct relations and business with the goy world.

This also strengthens the tribe by eleminating weak genetic lines, those with less than total dedication to the tribe.

In the end, they're culled.