The Barclays Gold Fix: Fake Justice For Real Criminals

One former precious metals manager at a big investment bank says there has long been an understanding among market participants that sellers and buyers of digitals [exotic options derivative contracts] would try to protect their positions if the benchmark price and barrier were close together near expiry.

That quote is from the Financial Times:  Trading To Influence Gold Fix Price Was “Routine”

As most of you know by now, Barclays was fined a meagre $43 million for the “misconduct” of one options trader by England’s Financial Conduct Authority, the equivalent of FINRA in the U.S.  The lack of a far deeper investigation into Barclay’s gold price manipulation activities – and that of the other LBMA Gold Fix member banks – is an outrage.  The decision and the process to reach the decision is a complete farce.

My co-producer and I did a quick video analysis of this FCA’s decision and why it’s the equivalent of having a full file of evidence on a serial murderer and only convicting him for jay-walking.   You can see the short video here:   The LBMA:  Fake Justice For Real Criminals

Please take the 9 minutes to watch this so you can see what a complete joke the entire western concept of “Rule of Law” has become.

The you can read this short report from Bloomberg in which Germany’s top financial regulator says “Metals, Currency Rigging Is Worse Than Libor” – article link.

The manipulation of the gold market runs far deeper, is more pervasive and is more insidiously executed than ANY of us can possibly understand.  That is, until the scheme blows up in the face of the Governments, Central Banks and Too Big To Fail Banks who are orchestrating the entire Ponzi  scheme.

When it is ultimately revealed that the gold supposedly being held on behalf of the citizens of the U.S. is no longer there, it will be the biggest scandal in the history of the country.

8 thoughts on “The Barclays Gold Fix: Fake Justice For Real Criminals

  1. In whitewashing Barclays’ fraud the way it did–picking one incident among hundreds or even thousands, fining the bank solely on that basis, and then effectively granting the bank immunity for the one crime AND EVERY CRIME LIKE IT (in this case by expressly stating that the ruling covers a 9-year period)–the Financial Conduct Authority is tearing a page straight out of Eric Holder’s Manual for Protecting Private Practice Clients While in Public Office.

    Goldman’s Abacus/Timberwolf fraud will suffice as an example. Goldman (a client of Covington & Burling, Holder and Lanny Breuer’s law firm) packaged up countless crappy CDO’s just like Timberwolf for the specific purpose of (1) jettisoning bad loans from its books and (2) making money on said fecal matter with shorts in the form of credit default swaps.

    And yet the S.E.C. pretends that it’s a unique case in order to prop up the appearance that the fine ($550 million for Timberwolf) is large when compared with the SINGLE FRAUD at issue. The S.E.C. ignores the fact that Goldman (and Citi, etc.) routinely put their “products” on an assembly line and fire up their factories of fraud.

    The American TBTF banks have absolutely inundated the U.S. Patent and Trademark Office with patent applications over the last 15 years precisely because bankers–indulging their never-ending fantasy that they actually make “products”–are constantly searching for money-making methods that are easily replicated.

  2. “what a complete joke the entire western concept of “Rule of Law” has become.”


    The Con-Artist Wing of the Democratic Party

    Recognizing this tsunami of deceit is actually central to recognizing what happened during the bailouts. The bailouts were, simply put, done in bad faith.

    Geithner was hired to lie, steal, and cheat on behalf of bankers, and he did so.

    The rival books, the competing stories about what happened, aren’t a philosophical debate over policies anymore than stabbing someone in the back with a knife is an honest airing of disagreements.

    Beyond that, one of Warburg’s very first investments with Geithner at the helm was a $100 million infusion of cash into a company called Source, which is a large European asset manager that handles a shadow banking instrument called an exchange-traded fund (ETF).

    The government recently warned that ETFs may help contribute to the next financial crisis.

    And amusingly enough, there is a bitter fight between the regulators as to how and whether to regulate these companies, one that Geithner could be swaying behind the scenes (as he did so often with policies he did not like during the crisis). And this is just one example—Warburg owns many companies in the heavily regulated finance space, and I’m sure Geithner can add value to many of them. Already, SEC Chairman Mary Jo White is aggressively fighting to prevent any regulation of these asset managers. White was nominated to be SEC Chairman on January 24, 2013, the day before Geithner left Treasury. Her nomination might have been the last substantive decision he made in government, and it could be profitable for his new employer.

    After reading this book and documenting lie after lie after lie, I’m convinced that there’s more here than just a self-serving corrupt official.

    There’s an entire culture, of figures at Treasury, the Federal Reserve, in the entire Democratic Party elite structure, and in the world of journalism, a culture in which Geithner is seen as some sort of role model.

    Americans may not get the reckoning, investigations, and jail time for wrongdoers, including Geithner himself, which they want, at least not now. But they don’t have to buy Geithner’s version of events.

    how the whole charade doesn’t go BUST is beyond comprehension.

    1. Fascinating. Matt Stoller (the author of the Vice piece you quote) worked for Alan Grayson, whose 5-minute disemboweling clinics performed on members of the Kleptocracy during the ’09-’10 congressional term were true epics. Not surprisingly, when Grayson was re-elected for the ’13-’14 term, following his absence in between, TPTB didn’t let him anywhere near a finance committee.

      Stoller’s comment about Geithner being revered by an entire culture of sycophantic thieves brings to mind Neil Barofsky’s observation, in his book Bailout, that Geithner’s swearing-in ceremony as U.S. Treasury Secretary seemed very much like a coronation.

      It’s an especially interesting comment given what happened with Obama and Citigroup. There were press reports that had Obama ordered Treasury to wind down Citigroup–by far the leading bailout recipient–but that Geithner unilaterally prevented that from happening. When the press (I think it was Forbes) followed up with the White House and the Treasury to figure out what in the Sam Hill was going on, it was only the Treasury that responded. The White House had no comment–as if Obama had been told to shut his pie hole so Turbo Timmy could handle it. Geithner then issued, in true Geithner form, a mealy-mouthed non-denial denial.

      That tells you a lot about who was calling the shots during Obama’s 1st term, and jibes with Stoller and Barofsky’s remarks about the culture of fawning admiration towards a smarmy but ruthless servant of his banking masters.

      1. Geithner is nothing more than Robert Rubin’s concubine. Geithner was a pot-smoking out-cast growing up. I have heard that second hand from people who grewe up with him. Whatever he did to wheel himself into Rubin’s chief feltcher, he’s nothing but an order-taker. He doesn’t know finance – he was like an East Asian studies major in college. The reason Citicorp was getting preferred treatment is obvious – Rubin. Rubin was also Obama’s first and biggest financial backer and fundraiser. It’s also why Jacob Lew is now Treasury Secretary.

        1. “Geithner is nothing more than Robert Rubin’s concubine.”

          I think you may be underestimating Geithner’s connections (and thus his power). Those connections appear not only to predate Rubin, but to run quite a bit higher in the food chain as well. From Stoller’s review (quoting Geithner’s book):

          “But not long after we returned from our honeymoon in France, Henry Kissinger’s international consulting firm hired me as an Asia analyst; my dean at SAIS had recommended me to Brent Scowcroft, one of Kissinger’s partners.”

          Geithner was married in 1985, well before Rubin (who unlike Geithner appears to have attained many professional positions on his own merits) had risen to any real position of power at Goldman. With backing from the likes of Kissinger in 1985, Geithner hardly needed whatever support a blandanoid Goldman manager could provide at the time. Stoller’s take on the Kissinger bit, and similar curiosities in Geithner’s bio like it, is spot on (cue Apocalypse Now music as Capt. Willard looks at Col. Kurtz’s dossier for the first time):

          “I’m sorry, but what? How does this just happen? And it goes on. One day, when Geithner was a junior Treasury civil servant, Treasury Secretary Lloyd Bentsen just called him out of the blue to ask his advice on a matter about which he knew nothing. Why? He doesn’t say—he’s just puzzled. Later on, he advances in Treasury without any real credentials in a department where a law degree or economics PhD is essential. Even Alan Greenspan eventually expressed surprise; he had just assumed Geithner had a doctorate. Power just always seemed to flow to Geithner, and he never says why.”

          Geithner’s grooming to be the Kleptocracy’s Head Butler started way before Rubin was on the scene, quite probably before TG was even an adult. My .02 anyway…

          1. Yes. All roads seem to lead to Kissinger and Brzezinski. But Rubin would be Geithner’s primary puppeteer. And let’s not forget that the bailout of Citigroup helped that Saudi Prince make zillions on his Citi investment.

            HOWEVER, I still maintain that Geithner is nothing red-headed step-child dish rag for the real players. Hell, Kissinger was the guy who saved Greenspan from financial ruin and transformed him from a Randian gold-bug into the fiat “maestro.” Greenspan went to Bronx Science with Kissinger and his econometric firm was on the brink of disaster when Kissinger plucked him from ashes.

  3. The point isn’t whether or not the gold market will continue to be fixed it is whether or not it will be fixed in London or for that matter Chicago. Since the medieval times and probably before the price of gold has been fixed. Originally gold was fixed annually in the fields of Santiago de Compostela. Now the far eastern Rothschild banks are joining with the Chinese to run the Shanghai market. There is no reason why the London gold fix can’t be jettisoned along with the 400 oz. bar. Gold is no longer fixed in the fields of Santiago de Compostela.

    As the system dies the symbolism and structures die with it. I can’t imagine the Shanghai traders for HSBC giving a stuff about the London fix in two years.

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