Deutsche Bank exits from gold, silver price-setting amid probe
Deutsche Bank is withdrawing from the price-setting process for gold and silver, known as fixing, as part of its strategy to scale back its commodities business.
The bank’s decision comes amid investigations by German and English regulators into suspected manipulation of precious metals prices by financial institutions.
Financial markets have come under serious scrutiny after the Libor (London Interbank Offered Rate) probe last year revealed that the London interbank offered rate was being manipulated.
Deutsche, Germany’s largest bank by assets, is one of five lenders charged with controlling the London benchmark price for gold and one of three that determine global silver prices.
“Deutsche Bank is withdrawing its participation in the gold and silver benchmark setting process following the significant scaling back of our commodities business. We remain fully committed to our precious metals business,” the bank said in a statement quoted by AFP.
However, it insisted that remains “fully committed” to its precious metals business. In early December, the bank warned it was scaling back its commodities trading in face of increased regulatory constraints in the sector.
The German institution — Europe’s biggest investment bank by revenue— fell 0.5% to 39.39 euros at 10:57 a.m. in Frankfurt, slashing this year’s gains to 14%.