Goldman Sachs and HSBC sued by Florida jeweller for fixing platinum prices

 

Jamie Dunkley
Wednesday 26 November 2014 13:50
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Goldman Sachs's top employees have seen packages cut by a half or more
Goldman Sachs's top employees have seen packages cut by a half or more

Goldman Sachs and HSBC are among a group of banks being sued in the US for allegedly fixing platinum and palladium prices.

Modern Settings — a jeweller that buys precious metals and derivatives set on their prices — claims the banks “were privy to and shared confidential, non-public information about client purchase and sale orders that allowed them to glean information about the direction” of prices.

“This unlawful behaviour allowed defendants to reap substantial profits, while non-insiders, which include plaintiffs, were injured,” lawyers acting for the company added.

Separately, HSBC is facing a probe into allegations that an employee leaked confidential client information to a major hedge fund, according to reports.

The leak is alleged to have taken place in March 2010, when HSBC was advising Prudential on its failed bid for AIA. A senior HSBC trader is said to have alerted a trader at hedge fund Moore Capital Management about a transaction taking place.

Goldman and HSBC declined to comment.

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