Deutsche Bank AG has agreed on Wednesday settling a US lawsuit over accusations of manipulating silver futures prices in collaboration with Nova Scotia and HSBC Holdings Plc. The banking trio has allegedly conspired in fixing silver prices at the expenses of investors, suggests the lawsuit filed.
Details on the terms for settlement haven't been disclosed. However, it is evident from a letter filed in Manhattan federal court by lawyers for the investors that the German bank commits for a monetary payment, reports Reuters.
Deutsche bank has signed a binding settlement term sheet and has been negotiating for a formal settlement agreed. Once agreed, the settlement proposal will be submitted for approval to the US District Judge, Valerie Caproni, who tries such litigations, according to a report published in Yahoo Finance.
Under the agreement, the German financial firm has also agreed helping the plaintiff investors in pursuing similar claims against other banks involved. It has also accepted a condition for providing instant messages and other communications cites Bloomberg quoting a letter filed with the court by attorneys Vincent Briganti and Robert Eisler. Silver future traders have sued a group of banks comprising of the three baking giants in 2014 on allegation of illegally manipulating the prices of silver and its derivatives. The traders have actually echoed similar claims brought earlier against financial firms for allegedly manipulating gold prices. At one stage of case proceedings, UBS AG has also been added in the list of defendants for the silver fixing case. Amanda Williams, a Deutsche Bank spokeswoman has declined to comment. Meanwhile, lawyers for the investors have also declined to respond against request for comment immediately over the accord. Furthermore, Rick Roth, a spokesman for Scotiabank, the operating name for the Bank of Nova Scotia, and HSBC spokesman Robert Sherman and an UBS representative all have avoided commenting. Investors have accused the banks for abusing power as the world's largest silver bullion banks to manipulate silver price through a secret once-a day meeting, known as 'Silver Fix'. The lawsuit accuses the group of banks for distorting prices on around $30 billion silver and silver based financial instruments. Act of such illegal fixing eventually violates US Antitrust Law. The lawsuit is among several in Manhattan federal court accusing banks for conspiring in rigging rates or prices in financial and commodities markets.
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