Major Suit Filed To Stop
Gold Price Suppression
From GATA Committee
<[EMAIL PROTECTED]>
12-10-00
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.
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. 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. 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.
Officials of the Federal Reserve Board have no authority to hold
directorships of the BIS, the lawsuit alleges. 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. 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. The text of the lawsuit is posted on the
Internet at: www.goldensextant.com/Complaint.html#anchor3130 and
www.gata.org/latest.html "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. "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." 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: [EMAIL PROTECTED]) Murphy may be
reached by telephone in Dallas, Texas, at 214-522-3411, and by electronic
mail at [EMAIL PROTECTED]
http://www.sightings.com/general6/majorsuit.htm
