Investigating Deutsche Bank’s €21 Trillion Derivative Casino In Wake Of Admission It Rigged Gold And Silver

Tyler Durden's picture

Submitted by Mike "Mish" Shedlock

Deutsche Bank Admits Rigging, Will Expose Other Riggers

Deutsche Bank has admitted it rigged both the Gold market and the Silver market. ZeroHedge has the details in his report Deutsche Bank Agrees To Expose Other Manipulators.

Many asked me to comment. I am shocked?

No. In the wake of admissions of rigged LIBOR and rigged Euribor (bank to bank interest rates in dollars and euros respectively), one would really have to wonder “What isn’t rigged?”

To the Moon, Alice?

While some think gold would have “gone to the moon” without this rigging, I wonder if it got as high as $1900 an ounce because of rigging.

The same applies to silver when it topped over $40.

It’s logical to believe riggers don’t much care about the direction as long as they make money. Hopefully we get more details from Deutsche Bank soon.

This could get interesting.

What Isn’t Rigged?

While pondering the above question, let’s dive into Deutsche Bank’s 2015 Annual Report to investigate other bid-rigging opportunities.

Consolidated Balance Sheet

Deutsche Bank has over €515 billion in “positive derivative values” in comparison to €496 billion in “negative derivative values”.

Hooray! Deutsche Bank is about €20 billion to the good. But how much was bet?

Deutsche Bank’s Derivatives Casino

The total size of Deutsche Bank’s derivatives casino is €21.39 trillion, notional.

Casino Breakdown

  • Interest Rate: €15.41 trillion
  • Currency Related: €4.78 trillion
  • Equity Index: €0.90 trillion
  • Credit Related: €0.27 trillion
  • Commodity Related: €0.08 trillion

How Much Risk on €21.39 Trillion?

Inquiring minds may be asking: How much risk is there on €21.39 trillion?

Perhaps surprising little. After all, interest rate risk could easily be controlled with a few timely phone calls from the Fed and ECB.

What risk isn’t controlled that way can always be controlled other ways (as we have seen).

I am pleased to note Deutsche Bank uses “central counterparty clearing services for OTC clearing” and the bank “benefits from the credit risk mitigation achieved through the central counterparty’s settlement system.”

“Margin requirements for uncleared OTC derivative transactions are expected to be phased in from September 2016.”


And we can all count on the obvious fact that Dodd-Frank reform has fixed everything.

So, nothing can possibly go wrong with €21.39 trillion in casino bets, just as €20 billion in profits (.0935%) shows.


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knukles's picture

No kiddies, netting does not work in reality.

UnpatrioticHoarder's picture

Mish still doesn't want to admit the reason gold and silver are still to this day *suppressed* by big banks is that it is on behalf of central banks.

Omega_Man's picture

all you need to know 

1 Thessalonians 2:14-15Common English Bible (CEB)

14 Brothers and sisters, you became imitators of the churches of God in Judea, which are in Christ Jesus. This was because you also suffered the same things from your own people as they did from the Jews. 15 They killed both the Lord Jesus and the prophets and drove us out. They don’t please God, and they are hostile to the entire human race

ebworthen's picture

So who will be put in prison or hanged for this injustice?

Let me guess...NO ONE!?!? 

Fuck you Wall Street and Brussels, your time will come!

You give Pirates a bad name.  No shortage of hempen rope for your necks!

nmewn's picture

In my opinion they did give pirates a bad

An interesting mental exercise: Who is the bigger thief, the one who stole for the king...or the one who stole from the one who stole for the king to divide among themselves?

I'm jus sayin ;-)

DaBard51's picture

Only partial credit, you need to do ALL the math.


* Due in less than one year: 21.03T

* _________one to 5 years: 13.46T

* ______more than 5 years:  7.08T

*________________Total:  41.57T

my numbers may not match DB due to rounding, but hey, what's 10B among friends?

GRDguy's picture

There is no risk of default.  DB is on the board that decides default.

Stupid people are under the illusion that they're buying insurance protection. 

Pure racket. The mob is envious.

Money_for_Nothing's picture

Agree that it is a pure racket. Most of the ones buying the fake insurance are required to by law and/or regulation.

offwirenews's picture

These types of things don't just happen. There's always a reason and a plan. This was done intentionally.

DonutBoy's picture

A common delusion, but wrong.  These things happen because of petty avarice and the assumption that every day will be pretty much like the last day.  There is no master plan.  The inmates are running the asylum.

Omega_Man's picture

here is what I am joining... 


Thank you for your email.


A class action lawsuit on behalf of Canadian investors was launched December 18, 2015 in the Ontario Superior Court of Justice.

The action arises from a conspiracy among the defendants to fix, raise, decrease, maintain, stabilize, control, or enhance unreasonably the price of gold and gold-related investment instruments, which include, without limitation: gold bullion and gold bullion coins, gold futures, shares of gold-focused ETFs, units of gold-focused mutual funds, gold certificates, gold leases, over-the-counter gold spot or forward transactions, and options on any of the foregoing (“Gold Market Instruments”) and to fix, raise, decrease, maintain, stabilize, control, or enhance unreasonably bid-ask spreads used by market participants in the gold market.

The law firms of Koskie Minsky LLP, Sotos LLP and Camp Fiorante Matthews Mogerman are counsel in a class action against financial institutions (the “Defendants”).

The Defendants are as follows:

  • The Bank of Nova Scotia
  • ScotiaMocatta
  • Scotia Capital (USA) Inc.
  • Barclays PLC
  • Barclays Bank PLC,
  • Barclays Capital Canada Inc.
  • Barclays Capital Inc.
  • Barclays Capital PLC
  • Deutsche Bank AG,
  • Deutsche Bank Securities Limited
  • Deutsche Bank Securities, Inc.
  • HSBC Bank PLC
  • HSBC Holding PLC
  • HSBC Bank Canada
  • HSBC Securities (Canada) Inc.
  • HSBC USA Inc.
  • HSBC Securities (USA) Inc.
  • London Gold Market Fixing Ltd.
  • Société Générale
  • Société Générale (Canada)
  • Société Générale SA
  • SG Americas Securities, LLC
  • UBS AG,
  • UBS Bank (Canada)
  • UBS Securities LLC


It would be very helpful to us if you could respond to this email with the following information:


  1. Your full name;
  2. Your telephone number;
  3. Your complete mailing address;
  4. Your email address;
  5. Which financial institution(s) did you/do you have an investment with;
  6. What type of investment(s) did you/do you have;
  7. When did you acquire your gold related investment; and
  8. Do you continue to hold your gold related investment or did you sell any?


The Notice of Action was issued on December 18, 2015 and is available here: 

BeanusCountus's picture

Gonna stay out of this until "value lost in boating accident" is on the list.

Implied Violins's picture

That's good, but the missiles might be more representative if they pointed down.

tarabel's picture



Are they using a Diver Down sign for their logo?

Solio's picture

Just ban those squiggly marks to the left of the decimal.

Joe A's picture

Gold and silver rigging....emissions rigging....rigging their own population with reunification tax and moderate salary increases....migrant crisis rigging....the breakup of Yugoslavia rigging.....what else have the Germans been rigging? The whole of Europe is being rigged so they became on top.

Augustus's picture

The Windy City Wetter still has followers?  Who knew?

Another of the Elliot Wave mystics still blogging away.

Space Animatoltipap's picture

It's simply part of a the dying of the old Europe. Huge financial problems will appear, huge civil unrest will appear. Indeed, arrogance has got its price. 

Troy Ounce's picture


Space, you are in Space and NOT on the "What's next with Europe" page.

Yes, yes, I am sure the stuff is incredible.

Troy Ounce's picture




"It’s logical to believe riggers don’t much care about the direction as long as they make money."

Wrong in this case.

A low gold price is extremely important, this to increase the perception that "all is well". Not too difficult to understand.


An independently set and run-away gold price to the upside is of such importance and gives such a negative signal to investors that one could argue that this is a national security issue. 


Like b comes after a and 2 after 1, it is clear that the US Government can only exist and have an aura of credibility with a low, managed gold price. 


You are right with Iibor, interest rates, etc. as far a direction is concerned. Not with the gold price as it must be managed to the low side.

mosfet's picture

Agreed.  On the face of it, I'd been concerned that un-rigged gold prices might fall, but Troy Ounce makes a very compelling argument for the opposite.  I also don't think China would be buying up 100's of tons of the stuff AND trying to position SGE as a global price setting member; only for the purpose of driving gold prices (and their massive investent in it) into the ground.  It also makes sense that the current extreme level of paper gold dilution rates in COMEX & LBMA are distorting scaricty, not abundance.  Eliminating any 'artificial abudance' of a naturally scarce commodity will drive the price up.

Troy Ounce's picture



Thanks for the support, mosfet. GATA has been writing about this for ages. It is so clear and logical, I just cannot see why the US Gov would not rig the gold price to "acceptable" levels. 

buffed's picture

Could the banks involved in the rigging be held liable for the losses inflicted upon PM investors and sued in a class action lawsuit?

NuYawkFrankie's picture

So Deutsche Bank Is 'The Villain Of The Piece'...

Oh yeah?

Q: How difficult do you think it was for The Squid et al to plant it's "operatives" in DB and other "dumb" Euro Banks that flocked to NYC in the '90's - like lambs to the slaughter, not knowing a derivative from a Dinkel Acker - to do its dirty work, always to The Squid's advantage, by:

1) Authoring those derivatives that The Squid wanted to
pounce on

2) Being the dumping-ground - the counter-party - to all those toxic derivatives authored by The Squid

3) Authoring those derivatives to manipulate markets on The Squid's behalf - thus giving the Squid "distance" & "plausible deniability"

A: NOT VERY DIFFICULT AT ALL! Especially since the Euro Banks that got into Wall St "trading" in the 90'
a) didnt know wtf a derivative was - they just knew that "Maestro" GreenSCUM said it was a great way of "mitigating risk" AND making money on the side! WHAT is NOT to LIKE about THAT ???

b) Thought everything was above board - and didnt realise what a kosher/cosa-nostra snake-pit Wall St was and
c) (as pointed out above) to put the icing on the cake, had the Squids operatives - 'one degree separated' at most,in that small field of derivative jockeys - running their trading-desks!!
Traders were writing & daisy-chaining contracts like confetti - that couldnt be reconciled 'til long-after they'd done their dirty work and flown the coop
d) Euro Bank HQs back in Deutschland didnt know wtf was going on - they just knew they were now "players" in some exotic new mkt - but were too freekin timid to ask, so as not to look dumb!

And THAT- in case you've been lying awake at night, scratching your head, wondering - is a large part of how the DUMB Euro banks ended up as the municipal garbage-tip for Wall St and why DB - at 21 trillion$ and counting - is the biggest bagholder in recorded history .

Flankspeed60's picture

Hmmm. Not missiles. Escape vehicles for top management..............

Ban KKiller's picture

notional ‎(comparative more notionalsuperlative most notional)

  1. Of, containing, or being a notionmental or imaginary.
  2. Speculative, theoretical, not the result of research.
    This paper proposes a notional Federated Identity Management (FIM) architecture.
  3. (linguistics) Having descriptive value as opposed to a syntactic category.
  4. (finance) Used to indicate an estimate or a reference amount  [quotations ?]
XXL66's picture

will this help to get my DB short into the green ?

KansasCrude's picture

This article is another reason I quit wasting my time on Mish's work his brain's reasoning power is fully biased against Precious Metals.  He has been in the deniers camp and thus should be scorned but here he tries to slide in under the tag but to no avail.  He offers up well by god the PM's could have been manipulated up!  Please Mish anyone who has watched you make book on the PM's knows you by your aversion to Precious Metals.  Even now with the revelations piling up you sniff and now throw it under the all markets are manipulated bus.  How magnanmious of you! 

While I don't quite put you in the Jeff Christianson camp I do put you in the camp of jepordizing thousands of your readers whom you have steered away from PM's which apparently offer perhaps the only monetary protections in the upcoming shitstorm.  I believe that group continues to justifiably shrink and my guess as they read between your lines offered here they will increasingly realize your massive blind spot has been shown the light but continues to deny.

Time is well past for you to seek the REDEMPTION that comes from full CONFESSION and CONVERSION.  Anything less reveals an ego that rides above reason....  Sad that's what I thought would eventually happen.....  Your ego reigns supreme over your reason...uh like that's a surprise.  Is your ego still above truly helping your readers? 

Time is growing late for REDEMPTION and CONVERSION.  HUMILITY is required.

Have a order of Rob Kirby and Greg Hunter to go with that

quadraspleen's picture



According to this article DBs exposure is far higher than these figures. Who are we to believe? ZH, or ZH?

explorer11's picture

 "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

Thomas Jefferson