Swiss watchdog starts gold manipulation investigation
Duncan Richardson, News Editor
26 Feb 2015, 11:03 a.m.
The Swiss competition commission, WEKO, has started an investigation into potential price manipulation of both the gold and silver price.
As a result of the 2012 libor scandal, the gold and silver fixes and other financial benchmarks have come under increased scrutiny by regulators on both sides of the Atlantic. A spokesman for the regulator confirmed the probe started in 2014, but declined to state which banks are under investigation.
The news comes only days after the U.S. Justice department announced they are investigating 10 U.S. based banks over alleged manipulation of the gold and silver price. The Financial Conduct Authority which fined Barclays Bank £26 million for allowing one of their traders to manipulate the gold fix have declined to launch their own investigation.
UK state owned bank Royal Bank of Scotland announced this morning they lost 3.5bn in 2014. Whilst HSBC reported their profits fell 17% from the previous year. It’s been a difficult week HSBC after their chairman faced questions regarding his personal finances and Swiss tax evasion scandal.