Dec 13 German banking regulator Bafin has
demanded documents from Deutsche Bank as part of a
probe into suspected manipulation of benchmark gold and silver
prices by banks, the Financial Times reported, citing sources.
Bafin has interrogated the bank's staff during several
on-site inspections over the past few months, the newspaper said
on its website, citing people familiar with the matter.()
Currently, gold fixing happens twice a day by teleconference
with five banks: Deutsche Bank, Bank of Nova
Scotia-ScotiaMocatta, Barclays Bank Plc, HSBC
Bank USA, NA and Société Générale. The fixings are
used to determine prices globally.
Deutsche Bank is also one of three banks that take part in
the equivalent process for silver.
In the wake of the recent Libor interbank lending scandal,
questions have been raised about how benchmark rates are set,
prompting authorities and banking industry bodies worldwide to
overhaul rate-setting processes.
When the probe was first reported in November, similar
investigations in the United States and Britain were also
reported to be under way.
The same month, Britain's Financial Conduct Authority had
asked those who administer major, non-interest rate-related
benchmarks, including gold, to assess by July next year how they
comply with new global regulatory principles governing all types
of indexes following the Libor scandal.
Bafin and Deutsche Bank were not available to comment
outside regular business hours.