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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (6649)	6/23/1999 10:51:00 PM
From: Bill Murphy	Respond to of 81035

Darleen, Here was my response to Marius. As always we get so little play. Dear Marius, We will be responding to them formally through our attorneys at Berger & Montague in the very near future. In essence, we never accused them of manipulating the gold market and do not understand why they said we did. It came to my attention in March of 1997 that they had put the " gold carry" trade on - 1 1/2 years before the blow up. We then heard about this position all during the summer of 1998. After the blow up, it was talked about on the news television show "The Lehrer Report", etc. After Mr. Peter Fisher called in the 14 institutions to "discuss" a bailout, word spread that they were let out of a supposed 300 tonne or so gold short position in an off market transaction. GATA is just trying to get to the truth in the matter. In their affadavit to us they denied that they did any gold trading, etc. ( If you do not have a copy of their statement, I will be happy to send it to you. We respect their response but are not sure that they dealt directly with what we are interested in finding out. Did any of the institutions afford them CREDIT based on a gold loan of some sort? The transactions could all have been done on the books of the bullion dealers that gave them the loans. Long Term Captial Management may just have entries on its books that reflect a 1 to 1.4% gold loan. That is what we are trying to find out. It was not our intention to infer that they were trading gold - a better way of saying it would have been to say "gold price exposure via loan agreements". It is public knowledge that this was one of the most leveraged firms in the history of investment firms. It is hard for me to believe that they did not ( somehow ) take advantage of such low interest rates via arranged gold loans. The gold loans to date have been nothing but winners for the borrowers. If they did not take advantage of them and used every other leverage play in the books, they missed one of the great interest rate borrowing opportunites of all time ( the record shows that is a fact over the past couple of years ). We have no interest in harassing Long Term. We just want to find out "what is what" and have the information that we have been afforded speak to the issues we are addressing. It is the activities of the N.Y. bullion dealers that we are really investigating. Best regards, Bill Murphy Chairman, Gold Anti-Trust Action Committee