Gold Fix Banks Face Suit from AIS Capital Management

The Wall Street Journal reported yesterday that AIS Capital Management has filed a suit alleging that Barclays plc (NYSE:BCS), Deutsche Bank AG (NYSE:DB), HSBC Holdings plc (NYSE:HSBC), the Bank of Nova Scotia (TSX:BNS) and Societe Generale SA (EPA:GLE) “combined, conspired, and agreed with one another and unnamed co-conspirators to manipulate the prices of gold and gold derivatives contracts.”

Law firm Hausfeld LLP filed the suit on behalf of AIS, which said it believes it has a responsibility to participate on behalf of its clients.

As quoted in the market news:

A spokesman for Deutsche Bank said: ‘We believe this suit is without merit and will vigorously defend against it.’

A spokesman for Bank of Nova Scotia said: ‘Matters relating to the gold fixing business are now before the courts. We deny the claims made against Scotiabank and will defend the bank on this matter.’

Barclays, HSBC and Société Générale declined to comment.

Click here to read the full report from The Wall Street Journal.