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Germany: Deutsche Bank plans to exit London gold fix panel thwarted

By  |  April 25, 2014

Plans for Germany’s Deutsche Bank to sell its potion on a panel that determines the gold fix benchmark could be thwarted thanks to lawsuits filed in the US over allegations the panel manipulated the benchmarks.

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    According to reports, Deutsche Bank may resign its seat after negotiations to sell the position were complicated in recent months. The US cases claim the banks, including Barclays, HSBC, Bank of Nova Scotia and Societe Generale, colluded to manipulate the price of gold around the world through their positions on the London gold fix.

    The banks have denied the allegations, including Deutsche Bank, which described the charges as “without merit.”

    But according to a source close to the matter, Deutsche cannot sell its seat on the fix. “Which institution would want to buy the Deutsche seat knowing about all these lawsuits for manipulation?” the source questioned. “Nobody will buy it until the cases are resolved.”

    Nearly 20 lawsuits have been filed this year over related charges.

    Full content: Chicago Tribune

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