Deutsche Bank Provides "Smoking Gun" Proof Of Massive Rigging And Fraud In The Silver Market

Tyler Durden's picture

Back in April, when we first reported that Deutsche Bank had agreed to settle allegations it had rigged the silver market in exchange for $38 million, we revealed something stunning: "in a curious twist, the settlement letter revealed that the former members of the manipulation cartel have turned on each other", and that Deutsche Bank would provide docments implicating other precious metals riggers. 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."

Overnight we finally got a glimpse into what this "production" contained, and according to documents filed by the plaintiffs in the class action lawsuit, what Deutsche Bank provided as part of its settlement was nothing short of "smoking gun" proof that UBS Group AG, HSBC Holdings Plc, Bank of Nova Scotia and other firms rigged the silver market. The allegation, as Bloomberg first noted, came in a filing Wednesday in a Manhattan federal court lawsuit filed in 2014 by individuals and entities that bought or sold futures contracts.

In the document records surrendered by Deutsche Bank and presented below, traders and submitters were captured coordinating trades in advance of a daily phone call, manipulating the spot market for silver, conspiring to fix the spread on silver offered to customers and using illegal strategies to rig prices.

“Plaintiffs are now able to plead with direct, ‘smoking gun’ evidence,’ including secret electronic chats involving silver traders and submitters across a number of financial institutions, a multi-year, well-coordinated and wide-ranging conspiracy to rig the prices,” the plaintiffs said in their filing.

The latest evidence is critical because as the plaintiffs add, the new scheme “far surpasses the conspiracy alleged earlier.” As a result, the litigants are seeking permission to file a new complaint with the additional allegations, i.e., demand even more reparations from the defendants who have not yet settled, and perhaps even more evidence of ongoing market rigging. Their proposed complaint broadens the case beyond the four banks initially sued to include claims against units of Barclays Plc, BNP Paribas Fortis SA, Standard Chartered Plc and Bank of America Corp.

Representatives of UBS, BNP Paribas Fortis, HSBC, Standard Chartered and Scotiabank didn’t immediately respond to e-mails outside regular business hours seeking comment on the allegations. Barclays and Bank of America declined to immediately comment.

The Deutsche Bank documents show, among other things, how two UBS traders communicated directly with two Deutsche Bank traders and discussed ways to rig the market. The traders shared customer order-flow information, improperly triggered customer stop-loss orders, and engaged in practices such as spoofing, all meant to destabilize the price of silver ahead of the fix and result in forced selling or buying. It is also what has led on so many occasions to the infamous previous metals "slam", when out of nowhere billions in notional contracts emerge, usually with the intent to sell, to halt any upside moment in the precious metals/ 

"UBS was the third-largest market maker in the silver spot market and could directly influence the prices of silver financial instruments based on the sheer volume of silver it traded," the plaintiffs allege. "Conspiring with other large market makers, like Deutsche Bank and HSBC, only increased UBS’s ability to influence the market."

Some examples of the chats quoted are shown below. In the first example a chart between DB and HSBC traders in which one HSBC trader says "really wanna sel sil[ver" to which the other trader says "Let's go and smash it together."

Another chat transcript from May 11, 2011 reveals a Deutsche Bank trader telling a UBS trader that the cartel "WERE THE SILVER MARKET"(sic) based on feedback from outside traders to which UBS replies, referring to the silver market "we smashed it good", leading to the following lament "fking hell UBS now u make me regret not joining."

Finally, for all those traders who wonder what happened to their stops as a result of dramatic moves in the price, here is the answer: a June 2011 chat between a UBS and a DB trader comes down to the following: "if you have stops... who ya gonna call... STOP BUSTERS"

If the plaintiff request for an expanded lawsuit is granted, we expect many more fireworks as other banks rush to settle on their own and provide even more documentary proof of unprecedented precious metal market manipulation, until there is just one bank left standing, ostensibly the one slammed with the biggest fine of all, perhaps even leading to prison time for some of the market riggers.

The full filings from the case (London Silver Fixing Ltd. Antitrust Litigation, 1:14-md-02573 U.S. District Court, Southern District of New York (Manhattan) are provided below:

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achmachat's picture

I'd like my damages to be paid out to me in silver.

Thank you.

Haus-Targaryen's picture

I am greatful.  I have been able to acquire so much of the real stuff on the cheap due to these assholes. 

They have their Porsche.  I have an industrial amount of silver. 

Lets see who is on top in 10 years. 

Killtruck's picture

I'm sure this information being revealed will lead to substantial changes being made. 

philipat's picture

Yes agreed, more of the same until the system collapses. The Central Banks and the BIS have created the present system specifically to allow them to manipulate PM prices without risking too much actual physical metal. The ETF's were created to further this agenda. In the present fiat Ponzi, there is no way that they can allow the price of PM's to become the canary in the coalmine. It will only end either when the finacial system collapses or when they can no longer supply any physical metal to maintain the scheme. Or both.

TeamDepends's picture

Let's go smash their heads in together, Negan style!

Au_Ag_CuPbCu's picture

Paging Bart Chilton...you dumbass!

beemasters's picture

I bet with Jamie Dimon in Trump's team, this market manipulation will end and all the criminals brought to justice. :)

Holy hand grenade of Antioch's picture
Holy hand grenade of Antioch (not verified) beemasters Dec 8, 2016 10:43 AM

Slap that $1 fine on them & show the world how tough you are & that this sort of thing will no longer be tolerated.

Pinto Currency's picture

.
.
The whole LBMA system is designed by the banks and the BoE - it is designed for corruption:

http://www.safehaven.com/article/42600/transition-of-price-discovery-in-...

tazs's picture

Everything is rigged. Even the US Presidential election.
https://biblicisminstitute.wordpress.com/views-of-news/#presidenttrump

tazs's picture
tazs (not verified) tazs Dec 8, 2016 1:21 PM

Thee rich will NOT let the poor folks decide. Pffft!

letsit's picture
letsit (not verified) tazs Dec 8, 2016 1:22 PM

Especially since they think they're superior. The "elite", as they call themselves.

Citxmech's picture

Between these clowns and the "let grandma freeze" assholes at Enron, it seems like all these firms recruit their traders only from frathouses.

What douchebags. 

philipat's picture

Dear letsit, tazs, techies-r-us, stizazz, lock-stock, beauticelli, Mano-A-Mano, mofio, santafe, Aristotle of Greece, Gargoyle, bleu, oops, lance-a-lot, Loftie, toro, Yippee Kiyay, lonnng, Nekoti, SumTing Wong, King Tut, Adullam, espirit, rp2016, Holy hand grenade of Antioch, amongst many others, I wonder why you continue to talk to yourself? When you use honest disclosure of your Biblical site (Even though the site has no connection whatsoever to your comments) I will  not respond with a SPAM alert. So there is no need to talk to yourself to prevent my SPAM alert appearing right below your fake links. Unless you see the need to congratulate and/or reassure yourself on your clever comments, knowing that nobody else will? Alternatively, it can only mean you are seriously mentally ill. Talking to yourself is not good; you MUST remember to take your meds.

Theosebes Goodfellow's picture

Wait,wait! I missed something! Who did they say is going to jail?/sarc

Until they either put someone in jail or execute someone this shit will not change. Wake me up when any of this really matters.

Pickleton's picture

"this market manipulation will end and all the criminals brought to justice."

 

It's so much easier to believe in skittle shitting unicorns.

Save_America1st's picture

would be so fucking awesome if it turns out to be a Silver Swan that ultimately does take down the banksters. 

why/how in the hell is the JP Morgue not named is this suit? 

and most of all.... these manipulation claims are dated years ago right?   why aren't there newer claims and evidence of all the manipulation and fraud that has been going on all these years since then and as recently as just the past few weeks of monkey hammering that we see almost daily??? 

Bay of Pigs's picture

Yes. And what about GS, Citi, MS, Wells and other well known bankster liars and cheats? No mention of the SEC or CFTC either. What do these people actually do all day long as gold and silver are monkey hammered and sites like ZH publish how it is being done? Fucking pathetic.

mbutler101's picture

Exactly...what wasn't said is key. The whole system is comprised of racketeers, with government rubber stamping the criminal activity with their silence. Silence=acquiescence. They are setting up a few fall guys so the racket can continue basically unchanged.

debtor of last resort's picture

Well Bay, they are regulating aren't they?

83_vf_1100_c's picture

Silver swan...

AU/AG combined is not big enough. Mortgage markets circa 2008 saw no one in the USA go to jail. So, what's a little silver price fixing and it's just paper dreams anyways. La Mordida will be paid and no one will gather cobwebs in some prison corp cell. I BTFD (physical) all the way down. I have a nice insurance policy laid aside. I'll never have enough AU/AG (see also pussy, guns, bikes, etc) but I have enough.

Fred Hayek's picture

That's easy.

They didn't start by suing JP Morgan or other american banks in an american court because the suit would be more likely to be thrown out.  By starting with Deutsche Bank, and others, they gave themselves the best chance to get to glorious discovery. 

auricle's picture

If there 'was' so much manipulation to suppress the price of the metals then why are they not moving back up in price? There still must be massive manipulation occurring and the CFTC is nowhere to be found. 

nope-1004's picture

USD related.  This is more than just 4 traders at 2 banks.  How stupid it is to think that 4 people could control the entire thing.  The manipulation is EXACTLY tied to the value of the USD, because any great rise in PM's puts a glaring spotlight on the dollar.

PM's won't go up until the truth about the treasury ponzi comes to light.

Bay of Pigs's picture

The UST bond bubble are the biggest bubble of them all. When it blows the entire financial structure implodes around the world.

Trillions will be lost. And of course, "nobody could see it coming."

laser's picture

They knew this was coming but they keep doing it.

Déjà view's picture

Stiffed...Rigor Mortis...By Silver Bullet...

Four chan's picture

bank proves fraud by showing it commits fraud.

vincent's picture

I don't Blame Bart completely.

Pretty sure he got "that" tap on the shoulder

SoilMyselfRotten's picture

It is also what has led on so many occasions to the infamous previous metals "slam", when out of nowhere billions in notional contracts emerge, usually with the intent to sell, to halt any upside moment in the precious metals/

 

And this has ceaseed when? Ugh


Hopeless for Change's picture

This is an outrage!

I demand a small fine be levied against the bank, which will be passed on to their clients. No individual accountability though, because the financial world will end.

Urban Redneck's picture

There does not appear to be any mention of Rothschilds, Underpants Gnomes, or bottomless bags of paper silver to facilitate perpetual price suppression... all I see is a bunch of middle/lower banksters trying to screw their customers and their competition using (limited) OPM to make a quick buck for themselves.  

So anyone wearing a tinfoil in here can suck my BSD until a smoking gun emerges that actually supports these misguided theories.

explorer11's picture

Argue with Thomas Jefferson and Louis McFadden, Ahole

"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

 

 

"Some people think that the Federal Reserve Banks United States are Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime."

Congressman Louis T. McFadden - served as Chairman of the United States House Committee on Banking and Currency during the Sixty-sixth through Seventy-first Congresses, or 1920-1931

Urban Redneck's picture

Your first quote has been proven false, and your second quote has no relevance to how and why banks actually manipulate prices (which I covered at length way back when Tyler was highlighting cross asset correlations between gold and USDJPY over the Asian lunch break).  

It's probably not wise to pick a quote fight with the only guy here who has actually pointed out the fallacy of the English translation of Voltaire's most famous quote on paper money (it actually had to do with fiat issuance, not the paper medium, in the original French).  

So I may be an asshole, but I'm a much better informed asshole than you are.

bobsmith5's picture

All you have to do is follow the ownership trail which leads directly to the people who own these banks whom you mention. You are just too lazy to do your homework.

They are so far above the legal fray that they keep out of the dirty work and media, because they own the governments and the media who are supposed to indict them. These relatively low level minions do all of the dirty work and take the rap.

Urban Redneck's picture

No I've actually done my homework.  And the ownership trail doesn't lead where you allege it does.  Influence and control are two very different things.  And frankly even the influence of certain has-beens is vastly overrated in the interwebs conspiracy discourse.  

Bay of Pigs's picture

So, enlighten us with your pearls of wisdom and knowledge on this please.

Or maybe just STFU?

Urban Redneck's picture

Why don't you provide some proof (or even ACTUAL evidence) of who you THINK owns the US banks, or STFU...

One of the several things I'm always raving about is the utter lack of understanding of the Clearing & Settlement function in finance around here.  Another yuuuge area of actual big banking that never gets discussed around here is CUSTODY.   

One of those other things in finance that Bubba completely fucked up, and that Vitali, Glattfelder and Battiston completely missed when they wrote their paper.  Steve Jobs' shysters have nothing on Alan Greenspan's and William McDonough's shysters, in terms of manipulating traditional corporate structuring and interrelations.  

explorer11's picture

OR when they get their LOBBYIST WHORES (who they helped get elected to gubbermint jobs) pass legislation making it ILLEGAL for private citizens to own the pm's.

You don't think these assholes are going to go quietly into the night, do you ?

THEY OWN IT ALL.  THEY OWN YOU.  WHEN THEY GO DOWN, YOU CAN BE SURE YOU WILL BE GOING DOWN WITH THEM.

 

"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

 

 

"Some people think that the Federal Reserve Banks United States are Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime."

Congressman Louis T. McFadden - served as Chairman of the United States House Committee on Banking and Currency during the Sixty-sixth through Seventy-first Congresses, or 1920-1931

0phita's picture

Shanghi Gold Exchange settles contracts only in physical bullions, which they are selling at a slightly higher price than the western PM markets. It's a perfect method to drain the west of their lower priced physical (what little remains) and sell to SGE at the higher price. To add insult to injury, the physical can't be paid for in USD! When the physical runs out, SGE will set the price and the western fixers will be shut out. 

waterwitch's picture

The CEOs of all of these companies should all be relocated to the silver mines in Guatemala and made to work for slave wages. 

Citxmech's picture

The big question that has not been answered (although we all pretty much know the answer) is why were these stooges given these marching orders?  Once again (just like with the DNC emails) the media focuses on the "wrong" part of the story.

Justin Case's picture

made to work for zero wages.

tmosley's picture

Until January 20th.

"The gold people are going to do very well under a Trump presidency."

Maybe, maybe not. Might even be moot. The Singularity is immenent.

38BWD22's picture

 

 

That's an interesting observation worth keeping an eye on.

Kaiser Sousa's picture

"I'm sure this information being revealed will lead to substantial changes being made."

doesnt mattter...

the point is you have been able to acquire REAL MONEY whose VALUE is infinetly ABOVE THE PHONY FUCKING USD PAPER PRICE...

in other words...

u r winning...

DEATH TO THE FUCKING MONEYCHANGERS.

AlexCharting's picture

You're most likely buying your silver with USD paper money (or other currencu), hence paper price matters to everyone.