Whilst listening to pundits and scouring news articles in search of subject matter for this months blog, the standout headline was Deutsche Bank admitting to the manipulation of gold and silver prices. As a result, there are now more law suits flying than kites on a windy day. Canadian lawyers have filed class action lawsuits (in the Ontario Superior Court of Justice) on behalf of investors, on a potential manipulation of silver prices too. And like anyone caught with their fingers in the cookie jar, Deutsche Bank have said they would be willing to divulge 'messages and other communications to help further their case' [for leniency], thus shopping fellow collaborators Societe Generale, SBC Securities, Scotia Mocatta, UBS AG and Barclays too.
It will come as no surprise if, after the hearing, this criminal activity warrants nothing more than some paltry fine. One can only surmise this insidious rot must go all the way to the top. How could it conceivably be possible, for these bankers to operate in such a way, without managers and ultimately the people at the top, not being aware or involved in these deplorable practices?
So what should we (the public) be calling for? The imprisonment of the bankers responsible? Or a much broader call for this institutional corruption to be brought to an end? Scapegoating the bankers responsible would undoubtedly be the choice of the top brass at these banks, thus maintaining the status quo, all washed down with a cocktail of sound bites. You know the style: we now have our house in order and working hard to create more transparency within business. We are spoon fed this lip service on a daily basis; ever expressed allegiance, never backed up by deeds. The rattling rhetoric of governments and institutions habitually fail us. To see a real change, we need to rally for an end to institutional corruption and real free markets.
The silver case is In re: London Silver Fixing Ltd. Antitrust Litigation, 1:14-md-02573. The gold case is In re: Commodity Exchange, Inc. Gold Futures and Options Trading Litigation, 14-md-2548, U.S. District Court, Southern District of New York (Manhattan).
If this has been of any interest or help please share. As always your comments are most welcome!