Another "Conspiracy Theory" Bites The Dust: UBS Settles Over Gold Rigging

[tony m]

When a person calls someone else the derogatory term - Conspiracy Theorist.  Don't look at the person being bullied, but the person calling it.

 

Real core exposure, that will barely touch MSM.  But check the body fat numbers on that Defensive End!

 

 

UBS to settle over precious metals misconduct allegations as part of forex market rigging probe

http://www.cityam.com/1415555430/ubs-settle-over-precious-metals-misconduct-allegations-part-forex-market-rigging-probe

 

 

UBS are expected to strike a settlement with financial regulators over allegations of misconduct at its precious metals trading business.

 

The settlement will form a part of a £1.5bn agreement the Swiss lender is due to make with five other banks to settle allegations of forex market rigging.

 

According to a report in the Financial Times, the bank found a number of problematic incidents at its precious metals desk.

 

UBS, Barclays, Citigroup, HSBC, JPMorgan and Royal Bank of Scotland have been the subject of probes into their foreign exchange trading from regulators in the UK, the US and Switzerland.

 

The six banks will announce a £1.5bn agreement with the UK’s Financial Conduct Authority (FCA), the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission in the US, and Finma in Switzerland on Wednesday this week.

 

However, unlike the five other groups under investigation, UBS’s precious metals arm is closely integrated with its forex trading businesses.

 

UBS and JPMorgan’s settlements this week will come less than a month after they were fined (along with Credit Suisse) £74m by the European Commission for colluding on benchmarks and prices, including libor rates and interest rate derivatives.

 

All five banks had set aside large sums for such an eventuality in the investigation into their forex trading. UBS set aside up to £1.18bn, while JPMorgan had gone even further with £1.4bn reserved for potential litigation costs.

 

*****

 

http://www.zerohedge.com/news/2014-11-09/another-conspiracy-theory-bites-dust-ubs-settles-over-gold-rigging-many-more-banks-f

 

Remember when everyone decried wholesale Libor manipulation as a crazy conspiracy theory (Zero Hedge: January 2009: "This Makes No Sense: LIBOR By Bank") because after all, it was impossible for so many people to keep their mouth shut or whatever the generic justification is for disproving such "conspiracy theories"? Why, none other than ICAP chief Michael Spencer says they all though Libor was "unmanipulable." As it turns out, not only is Libor manipulable(sic), and a vast rate-rigging "conspiracy theory" is quite possible when everyone's interests are aligned, but it also was massively profitable.

 

Then it was the turn of the even more massive, multi-trillion FX market, when first UBS squealed like a pig and soon ratted out every other bank in the criminal "Cartel" (or was it "Bandits"?) syndicate (see: "Meet The (First) Seven Banks Who Rigged The FX Market"). End result: banks such as JPM, Citi and BofA forced to review their criminal ways and adjusting their third quarter results a month into Q4. Many more legal fees, charges and settlement coming however for those who lost money on the other side of such long-running manipulation, please accept our condolences: you won't see a penny.

 

And finally, there was the precious metals market: a market which all the Keynesian fanatic paper bugs said was immune from manipulation, be it of the central or commercial bank kind, even with every other market clearly exposed for perpetual rigging either by hedge funds, by prop desks, by HFTs, or central banks themselves.

 

Sadly this too conspiracy theory just was crushed into the reality of conspiracy fact, when moments ago the FT reported that alongside admissions of rigging every other market, UBS - always the proverbial first rat in the coalmine, to mix and match metaphors- is about to "settle" allegations of gold and silver rigging. In other words: it admits it had rigged the gold and silver markets, without of course "admitting or denying" it did so.

 

[BizCT]

2 deutsche bank guys involved with libor killed themselves recently.

Sent from my iPhone using Tapatalk

Edited November 10, 2014 by Biz-R-OWorld

[malesi1]

hmmmm, can I get some of the money I lost back?....HELL NO!