Published on Gold Anti-Trust Action Committee (http://www.gata.org)

Mining Web article publicizes GATA lawsuit

By cpowell
Created 2000-12-14 08:00

8:15p EDT Wednesday, December 13, 2000

Dear Friend of GATA and Gold:

Thanks so much to GATA's special friend in Belgium who
sent the dispatch below showing how our message and
lawsuit are being publicized around the world. He shows
how all of us who are interested in gold can help the
cause even if we can't afford large financial
contributions. He has asked not to be identified here.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Today the leading Belgian financial newspaper, De
Financieel Economische Tijd, published an article on
the lawsuit filed by Reg Howe. I've translated it from
Dutch to the best of my ability. Don't hesitate to
contact me whenever you have questions about things
happening here in Europe (specifically in Belgium)
concerning the gold cause. I will keep urging Belgian
media to cover your actions and send word on the
rigged gold market in general, and will report on
anything I read or discover that might help you guys.

Together we'll win!

* * *

De Financieel Economische Tijd
Wednesday, December 13, 2000 (Page 10)

Shareholder Accuses BIS of gold manipulation;
Bank of banks rejects accusation

(Tijd/Reuters) -- Reginald Howe, gold analyst and
shareholder of the Bank for International Settlements
(BIS), has instituted legal proceedings against the
BIS, the bank of the central banks.

Howe accuses the BIS, five investment banks, and
officials of the American Treasury and the Federal
Reserve of manipulation of the gold price. Howe also
rejects the buyout offer of the BIS as too low.
According to the BIS, the accusation doesn't make

On Monday Howe filed the lawsuit in Boston with the
support of the Gold Anti-Trust Action Committee (GATA).
GATA (www.gata.org [1]) is a group of gold bugs who see a
conspiracy behind the low gold price. GATA is convinced
that various Wall Street houses with the BIS, the
Federal Reserve, and the American Treasury conspire to
artificially depress the gold price. According to GATA,
the American investment banks benefit from a low gold
price because they have enormous short positions on
gold and can avoid huge losses only by plotting

Howe adopts this reasoning. He accuses the Bank for
International Settlements, which itself is a
substantial owner of gold and an active trader in gold,
of price fixing, securities fraud, and breach of trust.
The banks J.P. Morgan, Chase Manhattan, Citigroup,
Goldman Sachs, and Deutsche Bank also have been
summoned. Furthermore, Howe says, officials of the
Treasury go beyond their authority. Also, according to
Howe, directors of the Fed can't have a seat on the
Board of Directors of the BIS. Among others, Fed
chairman Alan Greenspan has being sued by Howe. Howe
demands that the Treasury and the Fed stop intervening
in the gold market and that the investment banks stop
manipulating the gold price.

Howe also alleges that the BIS plans to pay its private
shareholders less than fair value in its current buyout
offer. In September the BIS announced a plan to buy out
its 6,000 private shareholders at 16,000 Swiss francs
per share. This is unacceptably low, many shareholders
think, because J.P. Morgan calculated the fair value at
33,950 Swiss franc per share. Deminor, the legal agency
that defends minority shareholders, is also involved
with this case.

The BIS rejected Howe's lawsuit as "baseless." "The BIS
is informed about the lawsuit, but considers it without
merit," said BIS spokeswoman Margaret Critchlow.

Source URL: