Deutsche Bank AG approved charges of manipulating silver futures prices, which sent losses worth billions for investors. It was reported that the financial terms of the agreement has not yet released in the lawyers’ filing.
Several financial firms were accused, such as Deutsche Bank, HSBC Holdings PLC, and Bank of Nova Scotia, in exploitations of their position in order to control prices of the daily silver futures and to earn undue profits. The trio created a secret meeting to fix silver prices, which is well-known as the Silver Fix.
Deutsche Bank has confirmed to provide a significant communication details in order to support the procedure against other defendants. Moreover, the UBS Group AG was also referred to as defendant in the case.
The complaint was filed in Manhattan federal court against the three banks as it has violated the US antitrust laws. As part of the complaint, the alleged rigged price for almost $30 billion worth of silver and silver financial products. It was reported that the letter was filed in the court for the investors, Attorney Vincent Briganti and Robert Eisler said.
Meanwhile, the Deutsche Bank will issue an earnings report for the first quarter of fiscal year 2016 on April 28. John Cryan, the Co-chief executive officer signaled last month that the bank “may make a small loss, we don’t know.”
“There is a lot of stuff we have to get done this year, so this year we’re not going to be profitable,” he added.
Losses of the bank are anticipated to rebound in part due to higher litigation charges.
Deutsche proposed a strategy in order to change the bank into a lean and profitable business by the year 2020. It was acknowledged by Mr. Cryan and CFO Marcus Schenck that the “insufficient controls and poor behavior led to enormous litigation burden.”
Conversely, the bank remained unsettled as it has remained threatened with substantial litigation charges, and was seen increasing since the financial crisis.