|
The DoJ and the Commodity Futures Trading
Commission are investigating at least 10 banks for possible
rigging of precious metals markets, the Wall Street Journal
reported last week, citing people close to the inquiries.
Tuesday's acknowledgment of its involvement in the investigation
comes after HSBC said in its annual report on Feb. 23 that the
DoJ had issued a request to HSBC Holdings in November seeking
documents related to a criminal antitrust investigation it was
conducting.
The latest investigation is a further distraction for a bank
battling to cut costs and boost profit even as it prepares to
settle allegations that its traders manipulated foreign exchange
markets. Taking into account charges, provisions and
restructuring costs, the bank suffered a 21 percent drop in
full-year net profit, it said on Tuesday.
Regulatory scrutiny of precious metals trading and benchmarking
has increased since the Libor rigging scandal exposed widespread
manipulation of interest rates in the foreign exchange market.
Swiss regulator FINMA said in November that it found a clear
attempt to manipulate precious metals benchmarks during its
investigation of precious metals and foreign exchange trading at
UBS.
"The behavior patterns in precious metals were somewhat similar
to the behavior patterns in foreign exchange," FINMA director
Mark Branson said in a conference call with journalists.
Germany's Bafin has been looking into how precious metals
benchmarks are set, while Britain's Financial Conduct Authority
said it was broadly looking at gold as part of an investigation
into commodity benchmarks.
Meanwhile, multiple lawsuits have been filed in U.S. courts,
alleging a conspiracy to manipulate precious metals prices.
The banks involved in producing global gold, silver, platinum
and palladium benchmarks, known as the fixes, said last year
they would no longer administer the standards.
A new silver benchmark is now administered by CME Group and
Thomson Reuters, while the London Metal Exchange produces
platinum and palladium benchmarks. The Intercontinental
Exchange(ICE) will produce a new gold benchmark from March 20.
(Editing by David Goodman)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
