GATA sues U.S. Fed over gold swap disclosure

Perhaps tilting against windmills, GATA in the U.S. is using the Courts to seek Federal Reserve disclosure of its actions in the gold markets which GATA reckons has led to the suppression of the gold price.

LONDON - 

The controversial U.S.-based Gold Anti Trust Action Committee (known as GATA) which believes that there has been a global concerted effort by governments and colluding bankers and even some mining companies to suppress the price of gold over the years, has entered a lawsuit in the U.S. Court System seeking a court order for disclosure of the U.S. Federal Reserve's records of its market intervention which, GATA claims, has been instrumental in suppressing the monetary metal's price.

The suit was filed in U.S. District Court for the District of Columbia and targets Fed records involving gold swaps, exchanges of gold with foreign financial institutions. In a letter dated September 17 this year to GATA's law firm, William J. Olson P.C. of Vienna, Virginia, GATA says Fed Board of Governors member Kevin M. Warsh acknowledged that the Fed has gold swap agreements with foreign banks but insisted that such documents remain secret.

The lawsuit follows GATA's efforts to obtain from the Federal Reserve and the U.S. Treasury Department a candid accounting of the U.S. government's involvement in the gold market. "These efforts" says GATA "parallel those of U.S. Rep. Ron Paul, R-Texas, who long has been proposing legislation to audit the Fed. The Fed has wrapped in secrecy much of its massive intervention in the markets over the last year, and Paul's legislation recently was approved by the U.S. House of Representatives."

The Fed claims that its gold swap records involve "trade secrets" exempt from disclosure under the U.S. Freedom of Information Act.

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