Deutsche Bank to Quit PM Price Setting Due to Manipulation Investigation

DeutscheDeutsche Bank, one of the 5 banks involved in setting the daily AM and PM London fix gold prices has announced today it will quit participating in precious metals price setting due to the ongoing investigation by German authorities into alleged precious metals manipulation.
It appears that the daily price fixes may be in Jeopardy particularly in silver, as the bank’s exit would leave only HSBC and the Bank of Nova Scotia as the remaining banks involved in the daily silver fix, and reports indicate others may follow Deutsche’s lead. 

 

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As Reuters reports, it appears that the German officials have done more work in 2 weeks than Bart Chilton and the CFTC did in 5 years of “investigating” silver manipulation:

Deutsche Bank will withdraw from gold and silver benchmark price setting, it said on Friday, as European regulators investigate suspected manipulation of precious metals prices by banks.

Deutsche’s exit would leave only 4 banks involved in the daily gold fix:

Deutsche is one of five banks involved in the twice-daily gold fix for global price setting and said it was quitting the process after withdrawing from the bulk of its commodities business.

“Deutsche Bank is withdrawing its participation in the gold and silver benchmark setting process following the significant scaling back of our commodities business. We remain fully committed to our precious metals business,” it said in a statement.

But wait…perhaps Blythe and Jamie can take advantage of Deutsche’s exit:

A source close to Deutsche said on Friday it was seeking to sell its gold and silver fixing seats to another member of the London Bullion Market Association.

But Deutsche’s decision may foreshadow moves by other fixing banks, a source in the London precious metals market said. “It wouldn’t surprise me if the other banks were looking at pulling out as well. Why would they want the aggravation?” said the source, who declined to be named.

Something tells us The Morgue is salivating at the prospects of a fixing seat:

Gold fixing happens by teleconference with four other banks: Bank of Nova Scotia-Scotia Mocatta, Barclays Bank Plc , HSBC Bank USA, NA and Société Générale, all of which declined immediate comment on the Deutsche move.

Chairmanship of the gold fixing rotates annually among the member banks. The last time a fixing seat changed hands was in 2004, when N.M. Rothschild and Sons sold their seat to Barclays. Two years earlier, Credit Suisse sold its seat to Société Générale.


Too bad for Deutsche Bank that the London Fix does not occur in NY under the CFTC’s jurisdiction.

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Comments

  1. Yeah i’m real sure the cftc would be all over it lmao.

    • @Dirt:  Here’s a fair way of deciding who sets the silver and gold daily price:  You take a chimpanzee, put a parachute on him, toss him out of a plane.  When he lands, the first person he grabs by the hand is the person who sets the daily price of PMs.

      Its really the identical principle that should be used to elect the 535 clowns in November and the President in 2015.

    • @Silverrrr: Ha ha, that’s in fact the most reasonable suggestion I have heared in a long time!

    • @silverrrrr
       
      OK, here’s an alternative idea.  Take all of the people who want to be president, in congress, or on the supreme court.  Fly them up to 50 feet above an open field and, as the chopper slowly moves forward, toss them out one by one.  The one who lives gets the job.  If more than one survives the 1st round, they get a month to heal up, and the process is repeated at 75 feet, and so on until we have a lone survivor for that position.  They get it because they have earned it and are clearly committed to doing it.  ;-)
       

  2. It appears that the daily price fixes may be in Jeopardy particularly in silver, as the bank’s exit would leave only HSBC and the Bank of Nova Scotia as the remaining banks
     
    and then the article goes on to say only four banks remain?
     
    So what? Banks are not the only members who can fix the price, there are other parties involved too. (not listed as Market Makers, but refiners.)

     
     
    the complete list of LMBA market making members as opposed to ordinary members is:
     

    Barclays Bank Plc

    Credit Suisse

    Deutsche Bank AG

    Goldman Sachs International

    HSBC Bank USA NA

    JP Morgan Chase Bank

    Merrill Lynch International Bank Limited

    Mitsui & Co Precious Metals Inc

    Société Générale

    The Bank of Nova Scotia – ScotiaMocatta

    UBS AG

    as you can see, there are two American Banks already party to doing the fix in Silver and gold.

  3. While I am awaiting my oh so “Dangerous” moderated post to be Doctored, here is the list from the LBMA website
     
    http://www.lbma.org.uk/pages/index.cfm?page_id=62&title=market-making_members

  4. In this brief clip below, we observe how a manipulated market can quickly return to its fair value. enjoy.

    MacGruber = Deutsche bank (and price ‘rigging’ cartel)

    The Van = PM market



     

  5. What is happening with the Silver price today?

  6. Read this earlier when Proverbs posted the link I believe. Interesting stuff. Are they going to fold and get out before they start hanging people? Mmmmmm

  7. I will set the Price:  “I Hearby Proclaim….”  That Everything (including free sex) shall cost “A Buck-two-ninety-eight.”

  8. Hey BobbyBazooka   great clip.  That was funny.

  9. I would say piss on the comex price of silver an all the plain people of the world we have the internet you know. Say what ever the crimex price is we double it an just say its the new  world people premium tax. Slowly be surly the real prce has to rise

  10. Wow ! a rise on Friday…there was time that meant Monday prices would rise higher ,but with the luciferians it means nada .I just keep stacking & packing hoping to Start my own Bank..lol
     

    • So when you were in my bunker yesterday, you WERENT TEXTING YOUR WIFE!  Damn, sneaky cell phone cams! :P

    • I thought I saw a camera flash from the grassy knoll while I was backing up the Ryder truck, returning from the local refinery.  
       
      Doc, we that have a sense of humor need your Picture Caption posts.

  11. This is a given ! Confidence is lost, people are angry and the Boogy men are the Banker & traitors Politicians..

    • not e-nuf guns in the hands of the US population.   I’d say 100 for 100  everyone should be armed.
      Note the DBank ‘sold’ their position   Today the WSJ had a note that DBank is going to have an earning ‘surprise’  Yep  That and selling ‘unwanted assets’ 
      How much will they lose?
      Yesterday a note on ZH showed HSBC will be light on capital by 2020. About $80 billion light.   The only way to remedy this is sell stock, sell assets or bail-in some homies in the Eurozone.  Or launder more CIA and drug cartel Opium and cocaine money. 

    • @my brother AGXIIK
       
      yes, guns have their place, though, spirit is a much greater force. My best friend is from Finland, and the stories his grandfather told him (and me) was that no matter how many men thrown at your position… it’s the spirit of the FREE men that fight beside u that decide the battle.
       

    • Men, women and children? Sometimes you frighten me, AGXIIK.  ;)

    • Why not children? I learned to shoot at 8 years old, had my own 22lr by 12 and a shotgun at 14. I was expected to put food on the table if I went hunting after school.

  12. I got the gun bug at about the same age. Mary B   But remember Tawnyard, we’re the good guys and girls. You would want me watching your back.  That’s what I do.
     We may be called to protect other lands if the need arises. It’s happened before.
     Having a well armed citizenry might seem a bit unusual but in a country filled with people who believe that the USA might be the only thing standing in the way of the Oligarchs and NWO,  the fight is worth it. 
    Arms control is as old as history with kings of olden times forcing the average person to yield their swords and spears.  400 years ago fire arms were subject to the same limitations. 
    Our founding fathers knew from up close and personal experience that a powerful government was a fearsome thing. The only thing that protects the people is a a solid first line of defense.  That is an armed citizenry.  It’s as true today as 240 years ago
    We are a product of a Constitution and Bill of Right forged in a hot crucible.  The Second Amendment was placed there to defend the First Amendment and all the rest of these documents.
     

    • I know that, AGXIIK. I can even see a time when you’re going to have to defend yourselves from the military and the police. You’re almost at that point now. But how do you defend yourself against the crazies in the meanwhile?
      Here in the UK, you don’t have to worry about getting shot every time you walk up someone’s driveway to ask for directions or a glass of water. I can’t imagine how hard it must be to live with that fear. I keep harping on about it, but I can’t begin to describe the feeling of my first night in Albuquerque. I had just embarked on a very long solo road trip. I checked into a motel. It was late. The clerk was sitting behind bulletproof glass. He passed my keys through a tiny slot. I never felt so alone.

      That was in 1999.

    • @Tawnyard I lived in Stockton in 1999.  At the time it was the “murder capitol of the world”.  I still walked down town without fear during the day. At night I would hear gun shots a block or two away…. every night.
      Stockton, CA. aside, Most of the cities that are not destitute for money aren’t so bad.  I live in Washington State, it’s a full blown gun toting state.  Hell a concealed carry is just 35 bucks, with no classes or anything.  Just pays for your background check.
      I am the kind of guy to walk up to strangers and ask direction.  I’ll approach you at a gas station, I might pull up to your house if im lost in the country and ask directions etc.  I don’t carry a sidearm, even though I could.  There is not a sense of fear or anger in the U.S.  There is a sense of safety in general.  I still get smiles in return from strangers in stores if I make a funny comment or ask their opinion on something.  And you know why there is little fear?  Those people are likely packing some firearm in their home.  They’re not afraid of approaching strangers.  When everyone’s armed, you respect everyone in general, because you could get shot.  Grant it this isn’t 100%, but when I travel between states, I pack a BIG GUN with me.  and I sleep soundly at the truck stop, with my shot gun in my lap. (not chambered-duh!)
      Any sicko approaching my car/truck?  When they look inside, I know what they’re thinking. “Next car!”  Anyhow, I’ve lived in 6 states and none of them house fear of your neighbor.

  13. If the prices of gold and silver are not broken, why do they need to be “fixed”?  In a free market, competitive bidding would set ALL prices.
     

  14. Tawnyard 
    there are plenty of bad guys to go around.  Reading about some of the zones and areas where people do not feel safe, whether it’s here in the US or UK., there will be some dangers when dealing with certain people who are prone to violence.  In my small town there is virtually no crime other than the occasion B&E or a car’s contents being pilfered.  The sport here is competitive DUIs but that’s another story.
     I have not problem approaching people nor do I have an issue being approached. It’s a friendly town and the nearby towns and cities are reasonable safe and friendly. 
      Carrying a firearm at all times is my nature and I am certainly ready to protect myself and others. But there no fear attached to it as far as I can tell.
    For instance, I’m rangemaster at the Concealed Carry class today    We have 18 people attending.  Their reasons for being there are varied but all want to have the opportunity to exercise their Constitutionally guarantied  right to be armed.
       In these classes often 35-40% of the students are women.  IMO and taking a chance for criticism, I am a firm believer that woman have a greater chance of experiencing problems of safety that a man. Often times women are fearful of guns due to lack of experience. Once they become more comfortable with arms, it’s quite an experience to see them take a solid enjoyment in this sport.
     A well armed women levels the playing field against any man or men.  That is a game changer if a woman should need to defend herself. No woman should ever live in fear of any other person.
    There is a very remote chance of any one of us needing to defend ourselves against violence but the fact is  that there is a chance.  Like a Boy Scout, I like to be  prepared.  But in that same theme, I carry a REMSA bag first aid kit in case someone is injury or I need to go into first responder mode.  There is another part of this equation and that is the spirit of volunteerism.  Some of us volunteer with the local Law Enforcement. Any of us volunteers can be called out on pager 24/7 so we need to be willing and be prepared to get the job done.   We also hear about what’s going on in the bad guy community from LEO.  That allows us to avoid the problem areas when possible.
    Now, as for Albuquerque, I’ve been there.  Motels and other places where the clerks are isolated and easy targets, a solid glass barrier is prudent.  These places are bad guy magnets.  Ditto for liquor stores and banks.  Rats travel in packs and they are well armed.  Thus we pack. 
    BTW I’d be the first to shed my arms if a society was totally peaceful and committed to non-violence.  That would be great.  I’d be able to lose 10 lbs of metal in my pockets. 
     

    • I was in Albuquerque in 2012 and enjoyed it.  I stayed at the Marriot “Pyramid”, which is quite nice.  No bullet-proof glass panels there.  No, it’s not a cheap place to stay but what the heck.  They only wanted some FRNs for the night, so nothing as valuable as PMs.  Their restaurant was wonderful.  I had a SW BBQ’d fillet of salmon that was exquisite.  Would like to return someday and check out the nuclear energy museum a few miles away.  I’ve heard that it is filled with interesting exhibits, many from the WW-II days of the Manhattan Project. :-)
       
       

  15. Why do banks feel the need to fix gold
    It’s not broken!

  16. @Ed_B:  No!  Your idea is not going to work.  The rub is that they “want” the job.  You see, that is the flaw.  Anyone wanting the job will fuck us from the moment they walk into their office! Try again.

    • @silverrrrr
       
      In the first place, they will have to EARN the damned job, not merely parade around, posture, and talk about it.  This will remove about 98% of the SOBs from even applying for the job.  Dropping to the ground from a height is good medicine for most of these jokers… serves ‘em right and all that.  While all manner of bad people with pretty smiles have gotten into office and done bad things, do you really want someone in office who hates the job?  Have you ever worked with someone who hated the job?  I have and he was the most worthless POS I ever met.  I gave the foreman the story about what this clown was and was not doing and then said that I could either quit OR he could fire the guy and get him out of my way.  Doing the job without him underfoot was about 4x as easy as having him “help” me.
       
      Now, your turn.  YOU try, not again, but for the 1st time.  :-)
       

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