For over a century, price manipulation claims have haunted the precious metals industry. News of the most recent Deutsche Bank scandal have made this an all too relevant topic for dealers, miners, and consumers.
In October 2016, groundbreaking litigation allowed American traders to sue the German Deutsche Bank, along with several other potential conspirators, in a silver and gold price fixing scheme, spanning roughly 8 years.
As of Monday, October 17th, Deutsche Bank reached a settlement with investors, detailing a $38 million dollar pay out for price manipulation schemes. Co-defendants, ScotiaBank and HSBC Holdings Plc., have yet to settle, and court orders have required financial documents from defendants be made available.
Interestingly, Deutsche Bank is cooperating with the plaintiffs by providing incriminating evidence against its fellow, non-settling defendants (likely in lieu of a greater fine). What once was a cohort of scheming thieves has now fallen to pieces as each entity scrambles for self-preservation.
The problem of precious metals price manipulation is far from over, however. While ground-breaking, this lawsuit is likely to be the first of numerous attacks at corrupt banks who have exploited positions of power too long, at the expense of investors and traders.
Several of the world’s largest banks have already come under investigation for questionable actions, resulting in suspicion and inquiries into financial statements.
Price fixing of precious metals specifically violates US Antitrust Law by destroying free trade, which allows criminal parties an unfair advantage to manipulate the market. False inflation or deflation may result from price fixing, creating a false economy, impairing financial decisions of investors or traders. Because so many investors use precious metals as a tool in their investment portfolios, price fixing has the potential to cause significant and irreparable damage to the futures of multitudes of individuals.
The future of fair trade is dependent upon the ability to honestly and accurately buy and sell commodities based on their true values. It is hopeful the litigation pursuing offenders of these crimes will aid in deterring the behavior.
Provident Metals proudly offers bullion at fair pricing, with integrity and customer service. Check out 2016 1 oz American Silver Eagles for quality silver bullion.
What are your thoughts on the price manipulation scandals? How would you like to see offenders prosecuted? Do you feel Deutsche Bank has received an appropriate penalty?
Money fines and forfeitures aren’t going to deter any of the banksters from swinging their criminal operations elsewhere. Because the potential harm to Americans is so great, the punishment should fit the crime. A forced divestiture of all American business activities and assets, along with a 5 year ban from re-entering the American market for any business function, seems far more in line with the crime.
But the banksters own the politicians, so don’t expect any law to actually protect the people.
These were not “claims” regarding price manipulation as much as they were/are legitimate accusations. Unfortunately those who cried foul on this criminality were marginalized, dismissed altogether or called conspiracy theorists. As is the modern trend, much conspiracy theory has become conspiracy fact. Kudos to those who spoke truth to the power and pressed for litigation. Will this end corrupt bankism? Will this end price suppression of metals to benefit paper? We can only hope.
I agree. Takes a lot of courage to take on the “man.”
Goes to show White Collar crime is the exact same thing as any other form of mob, cartel and corrupt government criminal enterprises.