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- A lawsuit filed in U.S. District Court in Boston on
behalf
of the Gold Anti-Trust Action Committee accuses five investment
houses,
the Bank for International Settlements, and top officials of
the U.S. Treasury
Department and U.S. Federal Reserve Board of
conspiring to suppress the
price of gold.
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- The lawsuit, Docket No.
00CV-12485-RCL, charges the defendants
with anti-trust violations,
securities fraud, and breach of fiduciary duty.
The U.S. government
officials are also accused of exceeding their constitutional
authority.
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- The lawsuit's plaintiff is Reginald H. Howe, a lawyer,
gold
market analyst, consultant to GATA, proprietor of an Internet site
devoted to gold market commentary (www.GoldenSextant.com),
and a
shareholder of the Bank for International Settlements and Freeport
McMoran Copper and Gold Inc. The BIS' plan to cancel those of its shares
in private hands so that the bank might become owned entirely by member
governments is at the center of the lawsuit.
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- The suit alleges that the BIS
proposes to pay its private
shareholders substantially less than fair
value for their shares. The suit
also claims that the BIS, owner of a
substantial amount of gold, has been
at the center of a scheme with
central banks and the investment house defendants
to coordinate the
sale of gold and gold derivatives to keep the price of
gold low and
thereby disguise inflation and weakness in the U.S. dollar.
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- Officials of the
Federal Reserve Board have no authority
to hold directorships of the
BIS, the lawsuit alleges.
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- The suit seeks injunctions to stop the Treasury
Department
and the Fed from intervening in the gold market and to stop
the investment
houses from manipulating the price of gold; an order to
the BIS to compensate
its private shareholders fully; and damages
against all the defendants
for fixing the price of gold.
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- Besides the BIS, the
defendants include: Alan Greenspan,
chairman of the Federal Reserve
Board; William J. McDonough, president
of the Federal Reserve Bank of
New York; Lawrence H. Summers, secretary
of the Treasury Department;
and J.P. Morgan & Co. Inc., Chase Manhattan
Corp., Citigroup Inc.,
Goldman Sachs Group Inc., and Deutsche Bank AG.
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- The text of the lawsuit is
posted on the Internet at:
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- www.goldensextant.com/Complaint.html#anchor3130
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- and
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- www.gata.org/latest.html
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- "With this
lawsuit, we hope to mobilize the gold
mining industry and gold
shareholders around the world to help us restore
a free market,"
GATA Chairman Bill Murphy said. "Mining companies,
their employees
and shareholders, and developing countries have been ruined
by the
manipulation of the gold market, and it has prompted ordinary investors
around the world to put their savings at greater risk than they would have
done otherwise. Meanwhile certain Wall Street interests have made billions
from this manipulation. GATA was founded to fight this, and fighting it
we are.
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- "But sustaining this lawsuit against defendants
that
control most of the world's money will cost money itself, and we continue
to appeal to gold's friends for financial contributions to support our
work."
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- GATA is a educational and charitable organization incorporated
in Delaware. Contributions are federally tax-exempt in the United States
and may be sent to GATA in care of Chris Powell, secretary/treasurer, 7
Villa Louisa Road, Manchester, Conn. 06043-7541 USA. (Email:
GATAComm@aol.com.)
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- Murphy may be reached by telephone in Dallas, Texas,
at
214-522-3411, and by electronic mail at
LePatron@LeMetropoleCafe.com.
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