10.06.2014 - Gold fix under scrutiny as regulators probe archaic system
The cozy little world of gold trading is getting less comfortable. A handful of bankers in London currently set the world standard for gold prices, a practice that started in 1919 and is widely used by governments, miners and brokers to buy and sell the precious metal and its financial derivatives. But regulatory probes have shone an unwanted spotlight on the benchmark known as the London gold fix, and prompted calls for change. The five banks that set the standard - Barclays, Bank of Nova Scotia, Société Générale, Deutsche Bank and HSBC - have been hit by multiple lawsuits from investors alleging they colluded to rig the price for their own benefit. Deutsche Bank, which gave up its seat on the gold-ixing panel, said the lawsuits had no merit. Barclays, SocGen and HSBC had no comment, and Scotiabank could not be reached...............................................Full Article: Source