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CFTC didn't know of Deutsche's market-rigging settlement until asked by GATA
12:23p ET Saturday, April 23, 2016
Dear Friend of GATA and Gold:
While it may be hard to believe, it seems that the U.S. Commodity Futures Trading Commission was unaware of Deutsche Bank's agreement to settle a class-action lawsuit accusing it of manipulating the gold and silver markets until GATA repeatedly sought to bring the matter to the commission's attention over the last week.
The news of the settlement agreement broke with Reuters and Bloomberg News reports on Wednesday and Thursday, April 13 and 14:
http://www.gata.org/node/16375
http://www.gata.org/node/16380
The reports said that Deutsche Bank had agreed in principle not only to pay financial damages to the plaintiffs but also to provide evidence against the other defendants in the suit.
... Dispatch continues below ...
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Since the CFTC has jurisdiction over the U.S. commodity futures markets and since the commission purported to have undertaken a five-year investigation of the silver market, closing it in September 2013 upon concluding that there was no cause for action –
http://www.cftc.gov/PressRoom/PressReleases/pr6709-13
-- it was natural to seek comment from the commission about the Deutsche Bank news.
So on Saturday, April 16, your secretary/treasurer e-mailed the commission's news media office as follows, providing the Internet link to the Bloomberg News report:
"Does the commission have any reaction to Deutsche Bank's admission to manipulating the gold and silver markets, as reported by Bloomberg News this week? Is the commission responding to Deutsche Bank's admission in any way? As you may recall, some years ago the commission reported that it had investigated the silver market and had found nothing improper. Is the commission reconsidering that conclusion?"
Receiving no response, on Tuesday, April 19, your secretary/treasurer sent by facsimile machine a letter to the office of the chairman of the CFTC, Tim Massad, reading: "As I am unable to get any acknowledgement from your commission's press office, could you answer my questions here? Does the commission have any reaction to Deutsche Bank's admission to manipulating the gold and silver markets, as reported by various news organizations last week? Is the commission responding to Deutsche Bank's admission in any way? As you may recall, some years ago the commission reported that it had investigated the silver market and had found nothing improper. Is the commission reconsidering that conclusion? Thanks for your help."
Having received no acknowledgment of that letter as well, yesterday – Friday, April 22 – your secretary/treasurer telephoned the CFTC's press office and within a half hour of leaving a message received a cordial call back from an assistant to the director. He said he was unaware of the Deutsche Bank story and could find no reference to it in the commission's compendium of news reports of interest to the commission's work.
Your secretary/treasurer conceded that the story is being largely suppressed by Western financial news organizations and sent him the links to the Reuters and Bloomberg stories as well as a link to the original complaint in the class-action lawsuit. He said he would consult his superiors and hoped to reply to me next week.
Of course all this gives the impression that the CFTC not only doesn't know what's going on in its jurisdiction but also that it doesn't want to know. It is additional evidence that certain commodity market rigging is outside the commission's concern because the U.S. government and other governments are the actual perpetrators, surreptitious market rigging by the government being specifically authorized by the Gold Exchange Act of 1934 as amended in the 1970s –
https://www.treasury.gov/resource-center/international/ESF/Pages/esf-ind...
-- and because of the admission in recent official filings by CME Group, operator of the major U.S. futures exchanges, that it provides volume trading discounts to governments and central banks for surreptitiously trading all futures contracts on its exchanges:
http://www.gata.org/node/14385
http://www.gata.org/node/14411
All this also seems to confirm that the prerequisites of this market rigging are the cowardice of the monetary metals mining industry, which refuses to protest it, and the cowardice of mainstream financial news organizations, which refuse to report it.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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