WEB Notes: We have presented this fact several times before and we were recently talking about it as well. The point here is everything is rigged against you. These are not the words of a pessimist, but rather the words of a realist.
Overnight Deutsche Bank not only agreed to settle a lawsuit accusing it of manipulating the silver fix, but also agreed to help the plaintiffs pursue similar claims against other banks as part of the settlement by providing instant messages and other communications, reports ZeroHedge. And so the former cartel members are turning on each other.
Within the span of 24 hours, it was reported that Deutsche Bank, along with other banks, has been rigging both the silver and gold futures markets since 2007. The German-based bank reached a settlement in two separate lawsuits brought by bullion investors.
According to Reuters:
The plantiffs accused Deutsche Bank of conspiring with Bank of Nova Scotia (BNS.TO), Barclays Plc (BARC.L), HSBC Holdings Plc (HSBA.L) and Societe General (SOGN.PA) to manipulate prices of gold, gold futures and options, and gold derivatives through twice-a-day meetings to set the so-called London Gold Fixing.
While they were illegally fixing prices in the gold market, Bloomberg reports they had an equally unscrupulous hand in the silver market too.
Silver future traders in 2014 sued a group of banks including Deutsche Bank, HSBC Holdings Plc and Bank of Nova Scotia alleging they unlawfully manipulated the price of the metal and its derivatives, echoing similar claims brought previously against financial firms over alleged manipulation of gold prices. Later, UBS AG was also named as a defendant in the silver-fixing case.
Traders alleged 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 a version of the complaint filed in April 2015. Of those four banks, only Deutsche Bank has reached a settlement.