The giant financial institution Deutche Bank announced in January that German financial regulators had requested documents from the bank in connection with an investigation into currency and gold price manipulation. At the same time, the bank announced that it would be withdrawing from the London Gold Fix and London Silver Fix, and selling their seats.
It didn’t turn out exactly that way, as investigations from financial authorities in Asia, Europe and America into gold and currency manipulation scared off all prospective buyers. Reuters reports that there are also at least 17 private lawsuits filed against all five banks on the London Gold Fix committee – another red flag to prospective new members.
Today, Deutsche Bank threw in the towel, after negotiations with giant Chinese bank ICBC fell through. They have announced that they are simply abandoning their seats on the gold and silver exchanges – something that has never occurred in the committee’s 95-year history. The bank formally gave the association a two weeks notice that it was withdrawing without finding a buyer. It will no longer take part in the gold fixing process on May 13.