Report: DOJ mines metal manipulation

BullionThe Wall Street Journal is reporting that the Department of Justice is investigating Goldman Sachs, JPMorgan Chase, UBS and several other prominent banks on whether they rigged prices for gold, silver, platinum and palladium.

The U.S. Commodity Futures Trading Commission has a separate civil investigation, the Wall Street Journal reported, citing a disclosure by HSBC Holdings in that bank’s annual report issued Monday, which also describes lawsuits against it in U.S. District Court for the Southern District of New York alleging manipulation of precious metals and derivatives.

Other banks under investigation, according to the Wall Street Journal, include Bank of Nova Scotia , Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, Société Générale, and Standard Bank Group.

UBS, which has a major trading floor in Stamford, was found by Swiss regulators last year to have workers who were benefiting from advanced knowledge of orders for silver. The bank ultimately paid a fine of nearly $140 million for the incidences of market misconduct related to silver trading, according to Bloomberg.

— Maggie Gordon contributed to this report.