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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: J.T. who wrote (7704)	5/9/2001 10:23:56 AM
From: J.T.	Respond to of 19219

Or this... Evening Standard, London May 9, 2001 By Lauren Chambliss in Washington American investment banks and government officials are hoping for a speedy end to a trial that accuses them of manipulating the gold market, following a report from the London Business School. The report has refuted the idea that US officials and Wall Street bankers have conspired to keep down the price of gold. As the gold price slumped in the past several years, conspiracy theories have risen in inverse proportion. The most popular is that US and European governments have manipulated the market to keep the price down for the benefit of the wealthier gold-holding nations, at the expense of the poorer gold-producing nations. Late last year, a group of gold investors backed by the Gold Anti- Trust Action Committee filed suit in the District Court in Boston against Federal Reserve and Treasury officials and five top investment banks, including Goldman Sachs, Citigroup, JP Morgan, and Chase Manhattan. The suit alleges US government, the Bank for International Settlements and big investment banks 'co-ordi-nated the sale and leasing of gold and the sale of gold derivatives' to keep the price low as part of a long-term strategy to stem institutional losses, prop up the dollar and minimise inflation in the US and Europe. Associate Professor Anthony Neuberger of the London Business School, however, reviewed gold market data over the past decade and found no unusual activity that would point to market manipulation. The report debunking the conspiracy theory coincides with a high- profile gathering of gold industry leaders in Durban, South Africa, this week at which members of the Texas-based Gold Anti-Trust Action Committee say they will reveal new evidence to support their allegation the Federal Reserve and US Treasury have intervened in the gold market. GATA chairman Bill Murphy has been quoted as saying he thinks the gold market manipulation will "turn out to be one of the biggest financial scandals in US history." Its suit charges that several major investment houses have appeared as heavy sellers of gold on the New York Commodities Exchange whenever necessary to kill any significant rally. Whether the case goes to trial will depend on a judge agreeing there is enough initial evidence to warrant a trial. A motion to dismiss the suit has been filed by Lawrence Summers, Alan Greenspan and other current and former government officials named as defendants. Summers was Treasury Secretary when the suit was filed late last year. The Department of Justice's memorandum asking the court to dismiss the case reasserts the US Treasury's claim it has not traded in gold or gold derivatives since 1978. "The GATA people are out of their minds and the London Business School report shows it," said a spokesperson for a major US investment bank, who asked not to be named. "A conspiracy between the German Bundesbank, the BIS, the Treasury, the Fed, and five big Wall Street banks? Come on. We hope for a speedy dismissal." -END- Best Regards, J.T.