Goldman
Sachs Group Inc. (GS) and HSBC Holdings Plc (HSBA) were sued in New
York over claims they conspired for eight years to manipulate prices for
the precious metals platinum and palladium in what plaintiffs’ lawyers
say is the first class-action lawsuit of its kind in the U.S.
Standard Bank Group Ltd. and a metals unit of BASF SE (BAS), the
world’s largest chemical company, were also sued. The four companies
used inside information about client purchases and sale orders to profit
from price movements for the metals used in products ranging from
jewelry to cars, according to a complaint filed yesterday in Manhattan
federal court.he lawsuit by Modern Settings LLC, a jeweler that buys precious
metals and derivatives set on their prices, claims the companies “were
privy to and shared confidential, non-public information about client
purchase and sale orders that allowed them to glean information about
the direction” of prices.
Smilar lawsuits have been filed this year in Manhattan accusing
banks of rigging the benchmark price for gold. Authorities around the
world are examining the gold market for signs of wrongdoing.regulators tightened scrutiny of benchmarks after uncovering
price-rigging in interbank-loan rates and currencies. Silver became the
first precious metal to change its traditional procedure in August, and
Intercontinental Exchange Inc. (ICE) will run the replacement for the
95-year-old London gold fixing. A new mechanism for platinum and
palladium starts Dec. 1.
Read more: http://www.bloomberg.com/news/2014-11-25/hsbc-goldman-rigged-metals-pric...
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