"When Gold Goes Above 1430 We Whack It"
By Tyler Durden
Submitted by Allan Flynn via ComexWeHaveAProblem blog,
As it goes in silver, so it goes in gold. In London at least.
In a bid to have UBS reinstated as a defendant in a London Gold Fix antitrust lawsuit, plaintiffs documents submitted to a New York Court last week include explosive chat room transcripts of UBS and traders from different banks encouraging each other to “push,” “smack,” and “whack” gold prices.
The transcripts are equally as startling as those described of banks of the London Silver Fix and UBS given to the court the previous day and described last week in this article.
On December 6th attorneys for plaintiffs in a consolidated class action against banks of the London Gold Fix and UBS, asked the court for leave to amend with a Third Amended Complaint. The TAC includes additional facts based on a “limited set of cooperation materials” produced by former defendant Deutsche Bank, as part of a settlement agreement and further statistical analysis.
Supporting documents say the amended complaint addresses the Court’s October finding that the previous complaint failed to plausibly plead firstly that UBS was part of the antitrust conspiracy, and secondly that the conspiracy existed prior to 2006.
Also, for the first time a gold producer has been added to the class action of those claiming losses in gold trading due to the manipulation. Compania Minera Dayton, SCM the Chilean subsidiary of Australian resources company Lachlan Star is said to have “sold gold on many of the specific days on which Plaintiffs demonstrated manipulation of gold investments” totaling $287.4 million over the period 2004 to 2013.
In support of allegations that UBS shared customer order information and executed coordinated trades to manipulate gold markets, samples of “dozens” of chat room messages between UBS and Deutsche Bank are contained in the revised document indicating “many efforts to artificially suppress gold prices, and to manipulate gold prices at the time of the Fixing.”
Filings include the following script reminiscent of an 1980’s arcade game scene. Rather than competing for business in the marketplace, supposed competitors UBS and Deutsche Bank however are seen coordinating tactics as they anticipate the most illiquid of days to jointly execute their sell orders for greatest negative impact on the market.
Deutsche Bank: bro japan holiday today
Deutsche Bank: think it’ll be quiet
Deutsche Bank: well, illiquid, not quiet haha
Deutsche Bank: illiquid means wild wild west
UBS:okay when gold pops 1430
UBS: we whack it
UBS: u sell your 50k
UBS: i sell my 20k
UBS: then we double that up and produce our on liquidity too
UBS: that should be enough to cap it on a holiday
Deutsche Bank: haha yeah
Deutsche Bank: lol
One chat see's a Deutsche Bank trader confirming with a UBS trader his trading had indeed influenced the Gold Fix: “u just said u sold on fix.” The UBS traded replied “yeah,” “we smashed it good.”
The secret associations between traders appear to be close knit, with the members willing …read more
Source: "When Gold Goes Above 1430 We Whack It"
