Tuesday, 25 December 2012

Financial Fraud in the Gold Market: Banks Pledge Same Gold to Numerous People

Banks Pledge Same Collateral Numerous Times

Big banks pledged the same mortgage to numerous people.

Similarly, big bullion banks borrow gold from central banks, and then rehypothecate it numerous times:

A 1999 study by the International Monetary Fund found that 80 central banks lent out 15% of their official gold reserves.

Central banks now appear to have too little gold to meet their commitments.

And private banks are raiding allocated gold accounts.

It is my understanding that the big banks did the same thing (rehypothecation) with many different asset classes including mortgage backed securities:

[Posted at the SpookyWeather blog, December 25th, 2012.]

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