Jamie DimonPerhaps this is why Deutsche Bank could not find a single buyer for its seat on the London Fix: the bank, along with HSBC have been officially accused on manipulating the silver fix in a new suit filed in federal court in Manhattan over the weekend. 

As Bloomberg reports: 

Deutsche Bank AG (DBK)HSBC Holdings Plc (HSBA) and Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver, an allegation similar to earlier suits involving the London gold fix.

The banks unlawfully manipulated the price of the metal and its derivatives, an investor claims in a complaint filed yesterday in federal court in Manhattan. The banks abused their position of controlling the daily silver fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions, according to the suit.

The class action suit filed by J. Scott Nicholson, represents investors who bought silver futures contracts since Jan 1st, 2007:

“We intend to vigorously defend ourselves against this suit,” Diane Flanagan, a spokeswoman for the Bank of Nova Scotia, said in an e-mail. Juanita Gutierrez, a spokeswoman for HSBC, and Amanda Williams, a representative for Deutsche Bank, declined to comment.

J. Scott Nicholson, a Washington state resident who filed the case, is seeking to represent a class of investors who have bought silver future contracts since Jan. 1, 2007.

The suit includes claims of aiding and abetting manipulation, as well as violation of antitrust laws and the Commodity Exchange Act. Nicholson seeks unspecified damages.

The 117-year-old system of fixing prices for the $5 trillion silver market is set to change next month.

Will the financial MSM finally be forced to cover the silver manipulation story after years of denials?

Deutsche Bank, Germany’s biggest lender, said in January that it would withdraw from participating in setting gold and silver benchmarks in London, a month after announcing that it would cut about 200 jobs in commodities and exit dedicated energy, agriculture, dry-bulk and base-metals trading. JPMorgan Chase & Co., Morgan Stanley and Bank of America Corp. also are retreating from raw materials.

Precious metals are getting more attention from regulators after price rigging in everything from interbank lending rates to currencies led to fines and overhauled financial benchmarks.

The U.K.’s Financial Conduct Authority in May fined Barclays Plc after a trader sought to influence the gold fix in 2012. An LBMA survey showed the market wants a new silver system to be an electronic, auction-based process with more direct participants and prices that can be used in trades.

The case is Nicholson v. Bank of Nova Scotia, 14-cv-5682, U.S. District Court, Southern District of New York (Manhattan).

  1. It’s clear that Diogenes is not going to find an honest banker in his lamp light
    The Obama-Holder DOJ is going to Cloward-Piven DBank by ringfencing it, pinning it to the mat and then accusing if of everything from the crash of 1803 to the Space Shuttle Challenger crash.  While DBank is guilty of many crimes these attacks are far more geopolitical than financial.  DBank, Credit Agricole and BNP Paribas are the primary money funnels for France and Germany. Both France and German are key to holding the petro dollar together.  
    These two country want desperately to go with Russia and isolate themselves from the predatory dollar paradigm.  
    Lights and heat stay on in German and France if they side with Russian. It will get dark and cold if they side with the US. Crushing the money funnels sends a clear message.  I wonder if they are close enough to launching the BRICS bank to save their financial systems

    • If you ever read the Heinlein book “Friday” what we are seeing is almost following the book, corporations at war with each other, sometimes in the same one but different branches. US has fallen apart into 5 or 6 separate regions….
      Plus leadership under BO (he really does stink) is reminding me of the movie “Idioacracy”!

    • Yesterday’s news and I’ve read it on more than one website.  Still the sheep are unmoved.  Go figure. Is there anyone still waiting for the grand awakening?  

  2. Again the gold and silver fix is almost irrelevant for price manipulation compared to illegally dumping billions of dollars worth of paper on the market.
    The fix is a hang nail compared to dumping paper which is stage 4 cancer combined with full blown aids.

    • I think the cure will be vaccinations full of squaline, mercury, an assortment of live virii sponsored by the bill and melinda gates foundation for the depopulation of earth.

    • Not far off the mark AGX, I would concur as quite close to the original AGENDA21
      But lest we forget:   http://silverstealers.net/tss.html

      “A Secret Society gradually absorbing the wealth of the world.”

      — Last Will & Testament of diamond monopolist Cecil Rhodes

  3. The Pilgims Society?!?!?  
    Where’s John Wayne when you need him
    ‘You’re burnin’ daylight, Pilgrim’
    I’ll take up that charge.
     Where are these silver stealin’ sons of bitches?  
    We hang horse thieves and silver stealers.
    Know what your enemy fears and you know your enemy.
    Keep stackin’

  4. Gee, Deutsche Bank got caught fixing the silver prices? Isn’t that the same thing as stealing others PMs a ‘little’ at a time. Tsk, tsk, bad DB. Bad HSBC …. badddd (insert stern face here)

    Then again, we shouldn’t blame them too much as we have/had all their gold never to be seen again. LOL Karma can sure be a bitch at times. 😀

    • Yes, she sure can… and it is usually well earned, well deserved.  But, what will be the consequences of this suit.  Either it goes nowhere and is tossed out of court OR the banks get fined a pittance, admit no guilt but promise not to do it again, and business goes on as usual.  We’ve seen this movie multiple times and this is the way it ALWAYS ends.  

  5. “The 117-year-old system of fixing prices for the $5 trillion silver market is set to change next month.”
    Holy dog crap, Batman!  A $5T silver market?  Does this not hit us between the eyes like the Hammer of Thor?  With an annual mine output of just over 800M ounces and very little above ground silver stocked, this is more than $6,000 an oz.!  Even at the usual 100 to 1 rehypothecation nonsense, this is still more than $60 an oz. for silver… paper and real.
    “Will the financial MSM finally be forced to cover the silver manipulation story after years of denials?”
    If they ever do, we can all be assured that they will go kicking, screaming, crying, and leaving fingernail drag marks every inch of the way.

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