Next Up on Your Illegal Banking “Hit List:” Fixing Gold Prices

Next Up on Your Illegal Banking “Hit List:” Fixing Gold Prices (Bloomberg)

Next up in the parade of banking bad boys are Barclays Plc (BCS) and Deutsche Bank AG (DB), which both stand accused of manipulating the London gold fix (a benchmark price used in the $20 trillion gold market). In all, 5 banks are involved in the lawsuit claiming the fix was in on this century-old benchmark. In addition to BCS and DB, Bank of Novia Scotia, HSBC Holdings Plc (HSBC) and Societe Generale SA (GLE) were also named in Manhattan federal court yesterday. The suit claims that unusual pricing patterns suggest manipulation since 2004. Does that mean it’s time to dump shares of any of these banks? Not according to Deutsche Bank spokeswoman Renee Calabro, who stated “We believe this suit is without merit…” But given the banking community’s recent track record of dubious activity, does anyone believer her?

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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