9 votes

China Finds $15 Billion of Loans Backed by Fake Gold Trades

China’s chief auditor discovered 94.4 billion yuan ($15.2 billion) of loans backed by falsified gold transactions, adding to signs of possible fraud in commodities financing deals.

Twenty-five bullion processors in China, the biggest producer and consumer of gold, made a combined profit of more than 900 million yuan from the loans, according to a report on the National Audit Office’s website.

Public security authorities are also probing alleged fraud at Qingdao Port, where copper and aluminum stockpiles may have been pledged multiple times as collateral for loans. Steps by the Chinese government to rein in credit by raising borrowing costs in recent years created a surge in commodities financing deals that Goldman Sachs Group Inc. estimates to be worth as much as $160 billion.

http://www.bloomberg.com/news/2014-06-26/china-finds-15b-of-...



Trending on the Web

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
ChristianAnarchist's picture

Oh this is funny! My wife is

Oh this is funny! My wife is Chinese and we've gone to China a lot over the last 20 years. One thing my wife is quick to point out is that the Chinese will cheat at everything. Even if they're making millions of dollars legitimately, they will find a way to cheat to make 2% more... Even her elderly mother who is living with us made a comment after buying some packaged fruit at the Chinese store that was later found to have some rotten fruit in the center that was not visible. She said it's best to buy your fruit from an "American" store because all the fruit is good...

Go figure...

Beware the cult of "government"...
http://www.freewebs.com/christiananarchist/

Cyril's picture

Oops.

Oops.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Seriously, now,

Seriously, now,

what else

http://www.dailypaul.com/313067/billionaire-hugo-salinas-pri...

did they expect, these days?

Darn. So, it's true.

Some people can be even more naive than I ever was.

Go figure.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius