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Bombshell Dropped in Federal Court: Proof of a Silver Market “Mafia” Among Big Banks

By Pam Martens and Russ Martens
December 8, 2016

market-riggersLawyers representing traders who allege they were ripped off by a group of colluding global banks filed eye-popping evidence in a Manhattan Federal Court yesterday showing that even as global banks were being criminally probed for rigging currency markets, they continued to engage in rigging the silver market, with a UBS trader referring to the group as the “mafia.”

In order to settle the charges against it in the matter, yesterday’s filing shows that the beleaguered Deutsche Bank turned over to the plaintiffs’ attorneys “more than 350,000 pages of documents and 75 audio tapes” that implicate other banks in a very serious way. In addition to banks previously named in the lawsuit (Deutsche Bank, HSBC, The Bank of Nova Scotia and UBS), trader conversations captured in the material provided by Deutsche Bank seriously implicate Barclays, Standard Chartered, BNP Paribas Fortis and Bank of America/Merrill Lynch.

According to yesterday’s filing, a trader conversation on June 8, 2011 went like this:

UBS [Trader A]: im gonna sell a lil more we need to grow our mafia a lil get a third position involved

Deutsche Bank [Trader B]: ok calling barx10 [Barclays]

The plaintiffs lawyers writer further:

“This coordinated manipulative conduct was intended to capitalize on the zero-sum nature of derivatives trading, including in COMEX silver futures contracts, and to extract illicit profits for Defendants from Plaintiffs and other Class members who held the opposite position. For example, as one UBS trader commented while planning a series of manipulative silver transactions with Deutsche Bank on April 1, 2011, ‘if we are correct and do it together, we screw other people harder.’ Thus, Defendants knew any profit resulting from their illegitimate trading activity flowed directly from harm caused to Plaintiffs and the Class.”

Numerous trader conversations confirming the sharing of insider information among traders at global banks were provided to the court yesterday, including the following between traders at Barclays and Deutsche Bank on April 6, 2011 — where one trader suggests the collusion amounts to “one team one dream.”

Continues below:

http://wallstreetonparade.com/2016/12/bombshell-dropped-in-federal-court-proof-of-a-silver-market-mafia-among-big-banks/
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Also see:

Deutsche Bank's 'smoking gun' evidence to expand U.S. silver rigging case

http://www.reuters.com/article/us-silver-lawsuit-idUSKBN13X1QZ