Five lawsuits which accuse HSBC, Deutsche Bank and Bank of Nova Scotia of manipulating the silver price have been consolidated in Manhattan federal court. The U.S. Judicial Panel on Multidistrict Litigation ruled the cases should be handled by Judge Caproni in Manhattan. Judge Caproni was selected as she is already over seeing allegations into gold price manipulation.
The plaintiffs accuse the banks of abusing their position in the century old silver fix to manipulate the price of silver. The silver fix was replaced by a new pricing benchmark in August and will be administered by Thomson Reuters and the Chicago Mercantile Exchange.
The five banks which administrate the London Gold Fix have also come under increasing scrutiny following the Financial Conduct Authority’s decision to fine Barclays bank £26 million, after one of their gold traders was found guilty of manipulating the gold price.