Bullion Banksters pay $50 million to Get Out of Jail Free

This week, information emerged that the ultimate three defendant banks in a gold value manipulation class motion lawsuit had, shock, shock, paid to settle the lawsuit, and all claims in opposition to them will probably be dismissed, in essence they’ve purchased a ‘Get out of Jail free’ card. Though a category motion just isn’t a felony case, the ‘Get out of Jail free’ analogy from the well-known Monopoly sport appears apt for what we focus on beneath.

The three banks in query are among the main ‘common suspects’ within the London fractional-reserve bullion financial institution cartel, specifically Barclays, Financial institution of Nova Scotia (Scotia Financial institution), and Société Générale (SocGen). Formally a fourth defendant entity is a part of the settlement, specifically, London Gold Market Fixing Restricted (LGLFL), the non-public firm registered in London by which the gold fixing members performed their every day gold fixing auctions and alleged gold value manipulations.

This antitrust class motion dates again to 2014 and represents 18 consolidated fits which allege {that a} group of funding banks (all of which have been members of the London Bullion Market Affiliation (LBMA)) colluded in a conspiracy to illegally rig and manipulate the gold value by sharing real-time value info in secret conferences that set the gold value to the good thing about the member banks.

The settlement class (these affected by the alleged manipulation) covers anybody who offered bodily gold or gold futures contracts / gold spinoff devices / gold monetary devices between 1 January 2004 and 30 June 2013 (i.e. a large variety of gold buyers all cross the world) or who purchased gold put choices (choices to promote) inside the similar interval.

For the file, the precise wording used within the settlement doc to outline the settlement class is as follows:

“All individuals or entities who through the interval from January 1, 2004 by June 30, 2013, both

(A) offered any bodily gold or monetary or spinoff instrument wherein gold is the underlying reference asset, together with, however not restricted to, those that offered

(i) gold bullion, gold bullion cash, gold bars, gold ingots or any type of bodily gold,

(ii) gold futures contracts in transactions performed in entire or partially on COMEX or every other alternate operated in the US,

(iii) shares in gold exchange-traded funds (“ETFs”),

(iv) gold name choices in transactions performed over-the-counter or in entire or partially on COMEX or every other alternate operated in the US;

(v) gold spot, gold forwards or gold swaps over-the-counter;

or (B) purchased gold put choices in transactions performed over-the-counter or in entire or partially on COMEX or on every other alternate operated in the US

Low-cost on the value: A mean of US $30 million settlement prices for every of the 5 bullion banks concerned

Additionally, not surprisingly, the settlement quantity (financial reduction) which Barclays, SocGen, Scotia and LGLFL are proposing to pay is, at US$ 50 million, a tiny fraction of the huge multi-year earnings that these banks would have made buying and selling devices linked to the gold value over the 2004 – 2013 related interval. Actually, $50 million is ‘strolling round cash’ to those elite funding banks, and would hardly cowl the budgets for his or her extravagant Christmas and summer time events.

Rats … Sinking Ship

Again in 2014  when the category motion lawsuit was first introduced, the record of defendants additionally included further ‘common suspects’, specifically, HSBC, UBS and Deutsche Financial institution (all of that are / have been additionally members of the notorious LBMA).

In 2016, the category motion choose dismissed UBS as a defendant resulting from…watch for it… a ‘lack of proof’ that UBS manipulated gold costs. Additionally in 2016, Deutsche Financial institution paid US$ 60 million to settle the category motion claims in opposition to it, whereas Deutsche on the similar time agreeing to share info with prosecutors in opposition to the opposite defendant banks.

In December 2020, the following rat to desert ship was LBMA heavyweight HSBC which paid US$ 42 million in a settlement deal and was then allowed exit the lawsuit. Notably, as a part of it’s settlement settlement, HSBC additionally turned on it’s fellow cartel members and agreed to:

“present transaction information and discovery to assist the plaintiffs proceed to go after the banks remaining within the swimsuitThe Financial institution of Nova Scotia, Barclays Financial institution PLC, Société Générale SA and The London Gold Market Fixing Ltd

This cooperation by HSBC appears to have put the warmth on the remainder of the cartel, since Barclays, SocGen, Scotia and London Gold Market Fixing Restricted (LGMFL) at the moment are settling for a mixed $50 million, so in whole which means between the three settlements, the bullion bankster defendants have now settled for a mixed $152 million: with $60 million being paid by Deutsche Financial institution, $42 million being paid by HSBC, and $50 million being paid by the Barclays-Scotia-SocGen trio.

Wishful Pondering

This $152 million (or what’s left after the legal professionals take their reduce) in idea goes to the plaintiffs, i.e. these buyers who’ve registered for the consolidated class motion and who’re in search of damages over years of gold value manipulation by the defendant banks.

In accordance with co-lead counsel for the plaintiffs:

“Contemplating the dangers and prices of continued litigation, each the mixed results of all three settlements and this third settlement settlement even when considered in isolation present wonderful outcomes for the settlement class.”

Wonderful outcomes perhaps by way of class motion payouts, however not so wonderful for the hundreds of thousands of buyers who’ve been doubtlessly broken by the ‘alleged’ collusion of those banks over the 2004-2013 interval in rigging the gold value.

So principally, by paying a measly sum of $150 million (measly from the funding banks’ perspective), these LBMA bullion banks have gotten off ‘scot free’ and have purchased their manner out of bother.    

At this level a caveat. Whereas the previous ‘Gold Fixing’ cartel contained the phrase ‘fixing’, this was what the precise member banks known as the operation, as a result of this fixing referred to a clearing value at which the trades within the public sale ‘fastened’. However in a scrumptious irony of karma, this title backfired on the cartel with the title changing into related to value ‘fixing’ i.e. gold value rigging and gold value manipulation. 

Which is why in 2014 the LBMA bullion banks rushed to do a smoke and mirrors title change to the London Gold Fixing which had been a twice every day public sale each enterprise day from it’s inception in 1919.

They did so by morphing the London Gold Fixing  into the all new “LBMA Gold Worth public sale”, with the LBMA and contributors pretending through a sleight of hand phantasm that the Gold Fixing and the LBMA Gold Worth public sale weren’t one and the identical. The rebranding was in essence an childish try by the fixing banks to attempt to distract consideration away from the category motion fits.

However the truth of the matter is that the London Gold Fixing and the LBMA Gold Worth are one and the identical, the identical outdated wine in a brand new bottle, regardless of the spin that the LBMA might placed on it. See BullionStar article “Rothschild emerges from the shadows for the Centenary of the London Gold Fixing” from 16 September 2019 by which era the LBMA had thrown pretense to the wind and have been celebrating the a hundredth anniversary of their clubby gold fixing. For these within the know, they can even see that in the whole lot concerning the Gold Repair, all roads result in the Rothschilds.

You may additionally need to seek the advice of the now legendary article from 15 Could 2014 wherein ZeroHedge profiled the ‘gang of 10’ fixers from the 5 members banks of the Gold Fixing at the moment – i.e the ten administrators of London Gold Market Fixing Restricted who have been unfortunate sufficient to be within the incorrect place on the incorrect time. The article is linked right here and is properly value studying. Actually, that article and it’s timing helped to precipitate the demise of the cartel, and beneath the highlight the proverbial rats promptly deserted the sinking ship.

The names of those LGMFL administrators have been Matthew Eager and James Vorley of Deutsche Financial institution, Simon Weeks and Steven Lowe of Scotia, Jonathan Spall and Martyn Whitehead of Barclays, Peter Drabwell and David Rose of HSBC, and Vincent Domien and Xavier Lannegrace of SocGen. Names which is able to now eternally be related to the demise of London gold fixing consortium 1.0.

Readers may additionally recognise the title of Deutsche’s James Vorley (a LGMFL director), who in June 2021 was sentenced to jail by the US Division of Justice for a fraud scheme (COMEX valuable metals spoofing).

For individuals who suppose that this materials is now all historic, chances are you’ll be stunned to be taught that London Gold Market Fixing Restricted (LGMFL) continues to be a really a lot reside firm, the administrators of that are presently Laurence Byrne of Barclays, appointed on 27 September 2019, Chris Nixon of Scotia, appointed on 26 Could 2021, and Paul Voller of HSBC, appointed on 6 October 2018. See the UK Firms filings web site beneath LGMFL for particulars.

The latest director of LGMFL from SocGen, Frederic Olivier Sirot, resigned on 31 October 2021, proper on cue as SocGen finalized the category motion settlement.

Apparently just for small time criminals. Actually not for Wall Road – Metropolis of London

Actually, many members of the unique ‘gang of 10’ gold fixers from 2014 have solely resigned as administrators of London Gold Market Fixing Restricted (LGMFL) fairly not too long ago. Xavier Lannegrace of Socgen formally exited LGMFL on 31 December 2020, lower than a 12 months in the past. Simon weeks of Scotia solely resigned from LGMFL on 4 October 2019.

Vincent Domien of SocGen solely formally exited as a director of LGMFL on 30 August 2019. Steven Lowe of Scotia solely bowed out of LGMFL formally on 22 August 2018. You get the image.


If you’re not already a part of the Settlement Class, sadly you might have missed the deadline, because the deadline to file a declare to take part within the settlement was 21 August 2021. See all particulars on the particular web site Gold Repair Settlement right here.

For individuals who like element, the gold repair class motion case which is referred to above is formally known as “Commodity Alternate Inc., Gold Futures and Choices Buying and selling Litigation, case no 1:14-md-02548, within the U.S. District Court docket for the Southern District of New York”, and the 32 web page doc of the Barclays-SocGen-Scotia request for settlement could be considered in pdf right here -> “Memorandum Of Regulation In Help Of Plaintiffs’ Movement For Preliminary Approval Of The Third Settlement Settlement”

That Memorandum begins as follows:

“Plaintiffs respectfully submit this memorandum in assist of their movement for preliminary approval of a settlement reached between Plaintiffs, on behalf of themselves and the settlement class, and Defendants Barclays Financial institution PLC, The Financial institution of Nova Scotia, Société Générale, and The London Gold Market Fixing Restricted (“Newly Settling Defendants”).

This settlement consists of a $50 million money cost and, if accredited and if the opposite Settlements earlier than the Court docket are accredited, would utterly resolve the pending litigation with a complete restoration on behalf of the category of $152 million.”

So there you might have it. 5 huge banks which can be apparently above the regulation pay a mixed paltry sum of $152 million (about $30 million per head) whereas presumably having incomes many many multiples of that sum whereas engaged in gold value buying and selling over a ten 12 months interval, after which stroll scot-free since they’ve the deep sufficient pockets to every purchase a ‘Get out of Jail Free’ card. In addition they get to “Move Go” time and again, whereas persevering with to gather the proverbial £200.

Why? As a result of that’s the way in which the Metropolis of London and Wall Road works when you might have the facility and the backing to regulate all the rigged system. And never solely are these banks enjoying an actual life sport of Monopoly, however they’re the precise Financial institution. And for individuals who know the foundations of Monopoly, the Financial institution can by no means go broke. 

Bullion Banks – Take the Cash and Run 

For additional BullionStar articles on the London Gold Fixing and related themes, see:

“London Gold Fixing web site www.goldfixing.com taken offline“, 19 March 2015

“The pre-2015 London Gold Fixings – Extra technologically superior than reported”, 22 June 2015

“The Financial institution of England and the London Gold Fixings within the Eighties“, 28 February 2015

“Visitor Publish (Allan Flynn): “Very skeptical” choose – former FBI/SEC official eyes London gold and silver repair lawsuits”, 21 September 2016 – Class motion article

“Visitor Publish (Allan Flynn): Easy methods to Set off a Silver Avalanche by a Pebble: ‘Smash(ed) it Good’”, 8 December 2016 – Class motion article

“Deutsche Financial institution agrees to settle with Plaintiffs in London Silver Fixing litigation”, 14 April 2016

“Deutsche dealer beneath DoJ prosecution, was a very long time director of London Gold and Silver Fixings”, 18 September 2020

“Rothschild emerges from the shadows for the Centenary of the London Gold Fixing”, 16 September 2019

“LBMA Gold Worth benchmark ignoring market situations, short-changing buyers” , 1 Could 2020


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