In March 2014, Facing Finance reported on the gold price manipulation of the LBMA (London Bullion Market Association) consisting of five international banks, Barclays, HSBC, Société Général, Bank of Nova Scotia and Deutche Bank. Initially Duetsche Bank refuted these allegations and were clear that they would defend themselves against these allegations.1 A few months later, and the bank has declared will conduct an internal review into gold price manipulation, in order to avoid sanctions.2
In addition to this, Deutsche Bank is being threatened with a new billion dollar lawsuit. This relates to actions regarding risky mortgage backed securities and is being brought upon six large international banks, these include the British HSBC and U.S. banks Citigroup, Wells Fargo, Bank of New York Mellon, U.S. Bancorp, and finally Deutsche Bank.The plaintiffs are among the world’s largest asset managers: BlackRock, Allianz subsidiary Pimco and DZ Bank. Blackrock is seeking compensation of up to 250 Billion dollars. Due to the limitation on claims being six years, this is the last opportunity to claim compensation for damages.
The case is based on the fact that financial institutions allegedly voilated their duties as trustees by pushing the issuers of mortgage backed securities to repurchase unsafe loans, before the financial crisis of 2008. The repackaging of MBS loans bundled together unsafe loans, including homebuyers who were financially unable to afford the purchase of their homes. The risk of these loans finally came to a head when mortgage holders could no longer service their debt due in part to falling real estate prices. The 2 trillion dollar bubble in the system burst, triggering financial collapse of the markets.3
According to media reports, on 14 July 2014, the New York banking giant Citigroup was fined a penalty of seven billion dollars (5.1 billion euros), of which 4.5 billion went to the US Justice Department and other US agencies and the remaining 2.5 went to property buyers grants to boost finance.4
- Facing Finance: Deutsche Bank: Manipulation des Goldpreises. Verfügbar unter: http://www.facing-finance.org/de/2014/03/deutsch-deutsche-bank-manipulation-des-goldpreises/ Zuletzt überprüft am 15.07.2014. [↩]
- Manager-Magazin:Deutsche Bank ermittelt intern zu möglichen Goldpreis-Manipulationen. Verfügbar unter: http://www.manager-magazin.de/unternehmen/banken/deutsche-bank-ermittelt-intern-zu-moeglichen-goldpreis-manipulationen-a-976316.html Zuletzt überprüft am 25.06.2014. [↩]
- Frankfurter Allgemeine: Neue Milliarden-Klage gegen Deutsche Bank. Verfügbar unter: http://www.faz.net/aktuell/wirtschaft/unternehmen/blackrock-und-pimco-verklagen-deutsche-bank-wegen-mbs-12998703.html Zuletzt überprüft am 15.07.2014. [↩]
- Die Welt: Citigroup büßt mit 7 Milliaren Dollar für Hypotheken-Deals. Verfügbar unter: http://www.welt.de/newsticker/dpa_nt/infoline_nt/wirtschaft_nt/article130136168/Citigroup-buesst-mit-7-Milliarden-Dollar-fuer-Hypotheken-Deals.html Zuletzt überprüft am 15.07.2014. [↩]