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Deutsche Bank has agreed to a $38 million fine for manipulating the price of silver. That writes Reuters based on Manhattan District Court documents . A group of investors had sued the bank for unlawfully influencing the daily silver price fixing. Deutsche Bank abused its dominant position and the susceptibility to fraud of the fixing, as a result of which it unlawfully made money at the expense of traders.
According to the lawyer of the aggrieved investors , Deutsche Bank will not only pay compensation, but will also help convict other banks that have been involved in the manipulation of the Silver price. These are Bank of Nova Scotia, HSBC and the Swiss UBS. These banks are said to have influenced the daily fixing of silver for their own gain.
According to the prosecutors, the silver price has been manipulated since 1999 by the big banks involved in establishing the daily fixing. Until recently, this was still a telephone procedure, which turned out to be susceptible to fraud. The manipulation involved $30 billion in silver investments and, according to the victims , would have given the banks a return of more than 100% per year.
In April, well-known that Deutsche Bank would reach a settlement in this case, but at that time the amount of compensation was not yet known. According to the plaintiffs' lawyers, this ruling is an important breakthrough, as it could speed up the settlement with other banks.
Deutsche Bank Pays $38 Million Settlement for Silver Price Manipulation
