Deutsche Bank Turns on the Gold-fix Cartel

By F.William Engdahl and cross-posted from New Eastern Outlook

DB_Frankfurt_Zentrale

Deutsche Bank, Germany’s once-respected giant bank, has admitted being a party–together with a cartel of major Wall Street and select other international banks–in deliberately manipulating the price of gold over a period of years. As well, the German bank, in a court settlement with litigants in a US court, has agreed to name the names of other big banks involved in the criminal enterprise. As this drama unfolds in coming weeks and months, the world may well see the price of gold soar to new heights to reflect the true global market demand. This is huge.

The first time I came across evidence that select Wall Street and other major international banks, in cooperation with the Federal Reserve, were deliberately suppressing the world gold price was in the aftermath of the global stock market crash of October, 1987. That was when the Dow Jones stock index lost 23% in one day. John Crudele, an exceptionally persistent financial journalist with the N.Y.Post and John Williams of Shadow Government Statistics and an exceptional economist, informed me at the time of the gold manipulatipon reports. The reason for the fix, which then-Fed chief Alan Greenspan reportedly orchestrated, was to prevent a stampede by panicked investors out of risky stocks and bonds into gold. Had gold profited from the stock panic, it could well have been an early end to the dollar system. It worked then to prevent a gold rise.

Now, on April 15, in a case tried in United States District Court in New York, Deutsche Bank wrote the Court that it has agreed on a mutual out-of-court settlement with the group of market traders suing the bank. Included in that settlement is a bombshell. Deutsche Bank will also turn over evidence it has to aid the traders in similar lawsuits against other major banks accused of being in the gold and silver price-fixing cartel. The German bank stated to the Court that it will turn over instant messages and other communications to help further their case:

“In addition to valuable monetary consideration to be paid into a settlement fund, the term sheet also provides for other valuable consideration such as provisions requiring Deutsche Bank’s cooperation in pursuing claims against the remaining defendants,”the bank’s attorneys wrote to the Court.

The traders bringing the lawsuits against Deutsche Bank and others allege that the banks abused their position of controlling the daily silver and gold price fix to reap illegitimate profit from trading, hurting other investors in the silver market who use the benchmark in billions of dollars of transactions.

Notably, the Commodity Futures Trading Commission (CFTC), the US government agency allegedly mandated by Congress to regulate those banks and their commodity derivatives trading, initiated its own investigation in 2008. After a five-year-long “investigation” into allegations of price rigging in silver markets, in 2013 the CFTC dropped the case. The chairman of the CFTC was Gary Gensler, a former senior partner at Goldman Sachs, probably just coincidence. Today Gensler is Hillary Clinton’s presidential campaign finance manager. OhOhOh

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