Deutsche Bank agrees to pay $60 million to settle litigation over gold price-fixing
The case is one among many in which investors have accused banks of conspiring to manipulate rates and prices in financial and commodities markets from 2004 to 2013
Germany’s Deutsche Bank set to pay $60 million to settle private US antitrust litigation that accusing the bank of conspiring to manipulate gold prices at their expense.
After the litigation by traders and other investors, the bank has now filled preliminary settlement with the U.S. District Court in Manhattan, Reuters reported.
The case is one among many in which investors have accused banks of conspiring to manipulate rates and prices in financial and commodities markets from 2004 to 2013.
Investors have filed complaints against banks and financial service inlcuding Deutsche Bank, Barclays Plc, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale.
However, Deutsche Bank denied wrongdoing, but had agreed to settle its part of the case in April.
In October, Deutsche Bank had agreed to pay $38 million to settle litigation over allegations saying the firm conspired with other banks to fix silver prices.
Meanwhile, the bank on Friday said its Global Markets division will cut ties with around 3,400 clients in its debt and equities sales activities.
According to the bank, it will soon cease debt sales services to some financial institutions and hedge funds as well as equity sales activities, the news agency reported.
The Bank initiating the restructuring process as the firm finalises talks with U.S. justice authorities over a multi-billion dollar fine, reports said.
Deutsche Bank Chief Executive John Cryan earlier said the bank would reduce the number of clients in its Global Markets and Corporate & Investment Banking divisions by about 50 percent.
"We expect to off-board about half of the current list of clients as the economic returns in these relationships are inadequate to us," he was quoted by the news agency as saying.
He also added that 80 percent of the firm’s income came from 30 percent of clients.
Meanwhile, Gold prices on Thursday fell near a 10-month low after facing challenge from a stronger dollar and expectations of an Federal Reserve interest-rate increase in December.
The precious fell to its lowest since February after suffering from its biggest monthly decline in more than three years. Gold struggles to compete when interest rates rise as it doesn’t bear interest.