Daily Management Review

Settlement of U.S. Silver Price-Fixing Case to be done by Deutsche Bank for $38 Million


10/18/2016




Settlement of U.S. Silver Price-Fixing Case to be done by Deutsche Bank for $38 Million
According to court papers filed on Monday, allegations that Deutsche Bank AG had illegally conspired with other banks to fix silver prices at the expense of investors would be settled by a payment of $38 million to settle the U.S. litigation.
 
In a number of recent lawsuits investors have accused banks of conspiring to rig rates and prices in financial and commodities markets and this case, the settlement for which was disclosed in papers filed in Manhattan federal court, was one of such lawsuits.
 
Though terms had yet to be disclosed, the settlement had been expected since April. The deal will likely be an "ice breaker" that will serve as a catalyst for other banks to settle, lawyers for the investors say in court papers.
 
The deal provides "substantial monetary compensation plus cooperation from Deutsche Bank in the continued prosecution of this important case against the non-settling defendants," said Vincent Briganti, a lawyer for the investors.
 
The settlement is subject to court approval. A spokeswoman for the German bank declined to comment.
 
In the litigation, UBS AG has been alleged of exploiting a fix that was created and conceived by Deutsche Bank, HSBC Holdings Plc and Bank of Nova Scotia (ScotiaBank) who rigged silver prices through a secret daily meeting called the Silver Fix, investors claimed in the law suit.
 
The conspiracy allegedly enabled the banks to pocket returns that could top 100 percent annualized and suppressed prices on roughly $30 billion of silver and silver financial instruments traded each year since 1999 when the alleged conspiracy began, the investors said.
 
The investors had sufficiently, "albeit barely," alleged that Deutsche Bank, HSBC and ScotiaBank violated U.S. antitrust law by conspiring to depress the Silver Fix from 2007 to 2013, ruled U.S. District Judge Valerie Caproni earlier this month.
 
There was nothing showing it manipulated prices, even if it benefited from distortions as the judge dismissed UBS from the case.
 
The investors could amend their complaint, including against UBS, Caproni at that time had said and a lawyer for the investors has said they planned to do so.
 
Earlier in April this year Deutsche Bank had reached settlements in the lawsuits over the allegations of manipulation of gold and silver prices. The bank has executed term sheets and is negotiating final details for the accords, attorneys for futures contract traders in two private lawsuits said in letters at that time.
 
According to the letters in April, as part of the settlements, pursuing similar claims against other banks would be helped by the German financial firm. Deutsche Bank would turn over instant messages and other communications to help further their case, Vincent Briganti and Robert Eisler, attorneys for traders in the silver-fixing lawsuit, had said.
 
"In addition to valuable monetary consideration to be paid into a settlement fund, the term sheet also provides for other valuable consideration such as provisions requiring Deutsche Bank’s cooperation in pursuing claims against the remaining defendants," attorneys Daniel Brockett and Merrill Davidoff had said in their letter in the gold-fixing lawsuit.
 
(Source:www.reuters.com & www.bloomberg.com) 






Science & Technology

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

Verizon to introduce 5G in five American cities in 2018

Airbus, Rolls-Royce, Siemens to create an electric aircraft

Study Finds Treatment Efficacy Could Be Sacrificed For Reduced Side Effects In Cancer Therapies By Patients

Some Information About Their Self-Driving Car Research Has Been Disclosed By Apple Scientists For The First Time

A Massive Data Breach Was Covered Up By Uber By Paying Up Hackers

A City Is Can Be Converted To A Living Organism, Showcases China’s Huawei

World Politics

World & Politics

Phase Two Of Brexit Talks, Announced On Friday, Would Be Tough, Analysts Say

Elections in Italy: the last chance of Eurosceptics?

15 countries with the highest level of organized crime

Athens agreed with international lenders

EU Pressure Reportedly Forces UK To Bow Down, Could Agree To Pay £50bn For Brexit Divorce

$1 Billion Is The Price For Freedom For Arrested Saudi Prince In Corruption Crackdown: Reports

U.S. Capital Washington Appears To Be In Range Of The Latest Missile Launched By North Korea

Ten biggest fears of millennials