The allegations about the currency and precious metals markets are “particularly serious, because such reference values are based – unlike Libor and Euribor – typically on transactions in liquid markets and not on estimates of the banks,” Elke König, the president of BaFin, said in a speech in Frankfurt
Deutsche is one of five banks involved in the twice-daily gold fix for global price setting and announced it was quitting the process…
In mid-December 2013, German banking regulator Bafin demanded documents from Deutsche Bank under an inquiry into suspected manipulation of benchmark gold and silver prices by banks, the Financial Times reported, citing sources…
Bafin reiterated in December 2013 that besides benchmark interest-rate LIBOR and Euribor rigging by banks, it had been looking at other benchmark-setting processes such as gold and silver price fixings at individual banks. (Read Reuters for more info.)
19 March 2012
Dr. Elke König, President of BaFin, appointed as member of ILF Board of Trustees
The President of Goethe University Frankfurt am Main has appointed Dr. Elke König, President of the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdiensteistungsaufsicht – BaFin), as a member of the Board of Trustees of the Institute for Law and Finance (ILF).
We are delighted that Dr. König will support the ILF with her experience and excellent contacts in the financial industry. She succeeds the former President of BaFin, Mr. Jochen Sanio, as a member of the Board of Trustees.
German Financial Regulator Elke König: ‘It’s Time to Search for Alternatives’
Elke König is the head of the Germany’s Federal Financial Supervisory Authority (BaFin). In a SPIEGEL interview, she discusses the scandals rocking the banking world and what needs to be done to rein in its casino culture.
König: I’m not sure if regulation will help. The fact is that the industry has relied on the Libor blindly. It reminds me of unconditional faith in the verdicts of the ratings agencies, which are also private companies. It’s time to search for alternatives.
We’re currently working together with British and American regulatory authorities to determine how much German financial institutes were involved in the scandal. As a matter of principle, banks must set aside the reserves necessary to cover potential legal damages…
Read More: SPIEGEL interview
I do not agree with Jim Willie’s statement that BaFin will not drop an investigation on the central planners when told, however that being said I still find the investigations and whistleblowing reports to be very revealing and damaging to confidence in the corrupt global financial system. As many financial professionals have said: “Lost confidence means the collapse of the system”. ~Ron
Click Audio above, or view video below:
Published on Jan 27, 2014
Willie discusses the German efforts to repatriate their gold reserves (along with the implications of only receiving 5 tons from the NY Fed in year 1), as well as Bafin’s investigation into precious metals manipulation and why unlike the CFTC’s, it is likely to result in criminal charges.
Finally, courtesy information provided by a high level executive at one of the world’s leading private refineries, Willie reveals the ‘smoking gun’ evidence that proves US gold was rehypothecated over a decade ago!
German Gold Manipulation Blowback Escalates: Deutsche Bank Exits Gold Price Fixing
Reuters also reports that Deutsche is now actively marketing its gold and silver fixing seats to another LBMA member, however now that the cat is out of the bag on the gold fixing manipulation scheme (the first of many), it is likely that others will seek to follow in Deutsche’s footsteps and seek to put as much distance between themselves and the wood-paneled room once located in the Rothschild office on St. Swithin’s Lane in London.
We wonder which of these five gentlemen is from Deutsche?
So if everyone exits the London fixing market, what happens then?
…Well considering that the fixing process over the years was manipulation pure and simple, those who will lose out are the… manipulators? it would seem rather logical. And speaking of manipulation, if indeed Germany is so keen on breaking the manipulators’ back, perhaps it can demand that the pace of its gold returns from the NY Fed and Paris accelerates. It may be surprised at what it finds.