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

(By Zerohedge)

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 in a lawsuit filed on Friday.

Deutsche-BankThe 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 on Wednesday showed.

Terms were not disclosed, but the accord will include a monetary payment by the German bank, a letter filed in Manhattan federal court by lawyers for the investors said.

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:

silver%20settlement%20letter

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 perhaps time for the so-called regulator who at the time was headed by ex-Goldmanite Gary Gensler, to reopen its investigation?

Original article from Zerohedge can be found here: Deutsche Bank Confirms Silver Market Manipulation In Legal Settlement, Agrees To Expose Other Banks

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27 Comments on "Deutsche Bank Confirms Silver Market Manipulation In Legal Settlement, Agrees To Expose Other Banks"

  1. Steve, you’ve been reporting about silver production declines. Today Hecla Mining reports 65% increase in silver production!

    Any comment?

    • Darryll,

      Yes, it’s true that Hecla increased production. This was a planned increase due to higher grades and increased processed tonnage. However, I have stated in several articles and interviews that even though Primary Silver Mining output would continue to rise going forward, the declines would come from a slowdown in by-product silver production from the base metal mining industry – Zinc-Lead & Copper.

      53% of the global silver mine supply comes from these three base metals. That is where I see the decline coming from.

      steve

  2. Patrick Henry2016 | April 14, 2016 at 8:40 am | Reply

    So Duetsche Bank gets sued for criminally manipulating the silver markets and stealing millions from people, no problem we are “da bank”! But North Carolina because you don’t want men in women’s rooms and locker room, or vis a versa, ” vee-longer-vant-to-do-business in your state”. Piss off! Take your bank and stick it and stay out of our States business. In fact, can we help you pack your #%*! too.

  3. As a german i must say “Deutsche Bank” annoys me.There is not one scandal where they are not involved.I read that they have about 5000 legal proceedings running.

    The best thing is a big fence around “Deutsche Bank” and installing a label ” big prison”.

    • silverfreaky,

      That has to be one of the funniest comments you have made.

      Thank you,

      steve

    • Yes, and the same could be said about UBS just across the boarder… I guess the European banks are just easier targets and thus get slapped first? however, it is my view that all TBTFs are in bed together. If one blows up they all blow up. this current system is past the point where it could be fixed. JPM got a public slap on the wrist (from the FED), DB in trouble, Credit Swiss in trouble, several Italian banks in deep trouble, not to mention about the 250 T in global debt and 1 Q in derivatives… the list is nearly endless at this point. Rough sailing lies ahead…

  4. The “sharks” are smelling blood in the water! Gives new meaning to the old adage;
    “There is no honor amongst thieves”. They have started to “eat” each other.

    The CFTC and more specifically, Gary Gensler must be brought to the bar to answer for their massive failure of fiduciary duty, in regards to the fraudulently failed silver investigation.

    Having been reeled back on their heels by continued financial blows, Duetsche Bank must have found itself extremely vulnerable to any further huge financial judgments against it, and “took” the deal that was offered as the lessor of the two evils.

    Andrew’s tireless work over the years (along with GATA) will finally be vindicated.

    • Yes, but it will not change anything, pricing will remain exclusively from western banks paper control rooms. Next tuesday, when new yuan gold fix will open, you will see a big comex attack. It will show the world who have the stick and who have the ass. If you bet against wall street and the city you will die. All bonds and stocks shorts will be decimated. Shame on easterns leaders, a whole bunch of clowns…

  5. ENDEAVOUR SILVER CORP -42,79
    EXCELSIOR MINING CORP 17,96
    FISSION URANIUM CO -52,80
    GEOLOGIX EXPLORATIONS INC. 13,50
    PEREGRINE DIAMONDS LTD. 9,32
    PRETIUM RESOURCES INC. 30,92
    SABINA GOLD & SILVER CORP -6,59
    SANDSPRING RESOURCES LTD. 26,28
    SPANISH MOUNTAIN GOLD LTD. -33,07
    TAHOE RESOURCES INC. 233,63
    TRUE GOLD MINING INC. 43,39
    WELLGREEN PLATINUM LTD. -66,08

    Actual value

    At the end it looks not that bad with my mineros.No recommandation!
    In total I’am about 35% in plus.Explorer are very volatil!

    My main positions are:

    tahoe resources
    sandspring resources
    geologix
    pretium

    Tahoe resources i got this way.First i bought Temex.They were bought by Lake Shore gold.And now LSG was bought by Tahoe resource.Thats the reason for the big win.I bought 500 000 pieces Temex(Penny Stock).

    With Tahoe resources I have another big silver producer.My first thinking was, in a physical way silver and mainly gold stocks.Hopefully silver will outperform gold.We will see.

    So in total physical and stocks I’am in plus.

    • I’m just now buying back into the miners. I’ve been absent mining shares since 2010. I’m playing with the juniors. I think we are turning the corner. These times are so reminiscent of the Gold pool collapse in 1968. Now Janet Yellen is running around in apparent desperation. The lies are so transparent. Not sure if we are seeing a banking failure, or the SGE gold fix causing a failure to deliver, or derivatives meltdown or who knows what. There are so many options and none appear to be good for the status quo. Looks like something fundamental is changing.

    • @SF. The miners are a multiple binary gamble… When SHTF will your broker/bank be left standing ? Will the stock market exchanges be left standing (think/google “Cede & Co.”)?? Will the miner in question survive (during the SHTF paper gold/silver may temporarily go to unthinkable lows) ??? Will the miner, post reset of PM “price” not be nationalized (in the US – under the NDAA all mines in the US could be nationalized – and elsewhere) ???? Time will tell… I dipped my little toe into the miners as well. Best of luck to you and to all!

  6. ” 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. ”

    Nothing would make me more happy than to observe Blythe and ? pulling each other’s hair out in a good old cat fight !

    Let’s get on with it !!!!!

    • get on with what exactly? You know how it goes – the settlements tend to be about one tenth of the profits from the fraudulent behavior, the settlement money usually goes to govt and lawyers and not those investors affected. And moreso, where is the reflective reset of the gold or silver Fix to correct the manpulation?
      Without the illiquid hour smackdowns in breach of fiduciary duty, gold would still be probably near the $2000 mark, silver at the $25 – and that’s without even adjusting for the knock on effect of market sentiment
      If Comex and LBMA agree to an overnight reset to around these figures, THEN will i cnsider justice MIGHT have been served

  7. Huge demand for 30 years T bond

    http://www.zerohedge.com/news/2016-04-14/blistering-demand-30y-paper-indirects-second-highest-ever

    Only the beginning of the bull market, negative rates on all US T bonds by 18 months !

  8. Maybe this is a dumb question, but... | April 14, 2016 at 12:19 pm | Reply

    So okay, IF they’ve been fixing the price of silver, then WHY is it still so insanely undervalued? EVERYONE has been saying that the silver price vis-a-vis gold is way too low.

    Isn’t the whole point of price-fixing to UP the price, higher than it would otherwise have been without a fix?

    I’m absolutely not challenging the excellent info you post here; I’m just… trying to figure it out.

    • Maybe , there is no question that is a dumb question , at least that’s what a teacher told me once.
      Silver (for obvious reasons) is an asset that it is a clear and present danger for the Federal Reserve’s currency. If (phys.Ag) was to be let go and not be controlled/manipulated to find it’s true level in value , the dollar would be destroyed in a short amount of time ! This jack boot on the neck of physical silver is a clear downward force by the central banks and wall street.

    • ” Isn’t the whole point of price-fixing to UP the price, higher than it would otherwise have been without a fix? ”

      By flooding the market with phony paper ounces of silver and making that the official call through the comex ,there is a manipulation going on by the “officials” who are in charge to control the said “spot price”. At this moment there are approx.500 + paper ounces out in the trading market which represent 1 ounce of physical. When the grab for physical , for what ever reason , begins , look out !

    • Ted Butler explained this a while back discussing the massive short positions JPM and other banks have at the Comex. For every dollar the price of silver rises the rigging banks stand to lose many millions based on their those short positions. If JPM’s physical silver hoard is a reality then they get the upside either way.

      Also, these revelations of DB PM rigging may be what Rob Kirby spoke of a month ago detailing admissions and fines coming soon. Here’s the interview…

      http://www.davejanda.com/guests/rob-kirby/sunday-march-13-2016

  9. Why now? Is China about to launch her physical ‘spot’ price so they can put the blame of the sudden sharp rize on scapegoat bank CFO’s? Sometin’s up… And my guess is we don’t have to wait long.

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

    And Now:

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

    http://www.zerohedge.com/print/528769

  11. Example of why I email letters regarding gurus. Peter Shiff just ran an ad stating “time is running out
    get Buffalo coins at $ .84 over spot.” On one hand he is hyping silver and on the other hand he is
    selling it at his website. This guy is a two faced, double tongued crud ball, He’s like the old time realtors who beg you to list your house with them. After listing he calls his client list and says ” Do
    I got a deal for you.”. I can get this for you at a discount. If silver were heading north as quickly as Schiff forecasts why not wait a month and really make money? Why? Because he knows nothing. He’s
    a huckster with a following. Beware men bearing gifts. Joe

  12. ” If silver were heading north as quickly as Schiff forecasts why not wait a month and really make money?”

    Becasue he makes a margin on what he sells, will buy more, and make a margin on that next month.

    That is just business.

  13. JPM is the big gun in silver price manipulation according to silver fan Ted Butler. Any comment on this?

  14. Just started buying silver. Enjoyed the commentary……..understood approx. 10%

  15. Stocks shorts annihilated :

    http://www.zerohedge.com/news/2016-04-18/capitulation-us-equity-bears-dump-shorts-fastest-2012

    Western central banks ruling the world again, again and again while asian clowns working all their life for a few peanuts !

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