Gold Sales: UBS, HSBC, DB Face Prosecution

The CFTC announced via press release that 6 current and former traders from 3 major banks will be charged with spoofing gold sales in futures markets.

Every month, we see op-eds wondering if manipulation is happening, usually with circumstantial evidence that it could be. Further supporting manipulation claims – and sometimes to the surprise of people who don’t keep up with the news – this is not the first time such charges have been brought. Especially against HSBC.

Our favorite sentence in today’s featured article is the last: “For those keeping count, this is roughly the 4th time HSBC has been found guilty of manipulating markets after the bank nearly lost its charter and swore it would never manipulate markets again.”

You can read all about the charges and the fines here, and comment below on whether you think the penalties are appropriate.

¬†Related: Is the Gold Market Being Tampered With? Here’s What You Need to Know.¬†

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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