Five top banks sued in New York over alleged manipulation of gold in London
March 7, 2014, 12:09 am TWN
NEW YORK--Five banks at the center of London's gold trade have been sued in New York for manipulating prices, in the latest accusation of fraudulent collusion in the global finance hub.
A class-action suit was filed by U.S. gold futures and options trader Kevin Maher against Bank of Nova Scotia, Barclays Bank, Deutsche Bank, HSBC, and Societe Generale, all involved in setting the London Gold Fix, a twice-daily benchmark priced as a reference for trade in gold and gold derivatives.
The suit, lodged in the federal district court in New York late Monday, alleges that since at least 2004 the banks worked together to manipulate the prices of gold and gold derivatives contracts.
Maher cited recent studies and analyses, published and unpublished, that indicate gold prices "have been manipulated by and during and around the times of the Gold Fix."