Gold Market Rehypothecation Fraud: Banks Pledge Same Gold to Numerous PeopleCommodities / Gold and Silver 2012 Dec 23, 2012 - 11:23 AM GMT
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:
(Options contracts on all commodities are similarly over-leveraged.)
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.
© Copyright Washingtons Blog, Global Research, 2012
Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.
© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.