* Deutsche gives two weeks' notice, to cease involvement May
* Four banks remain to set gold price, two for silver
(Adds background, details)
By Clara Denina
LONDON, April 29 Deutsche Bank has
resigned its seat on the London precious metal fixes without
finding a buyer, a spokesman for the lender said on Tuesday,
leaving four banks to set the global gold price benchmark under
increasing regulatory scrutiny.
Sources told Reuters last week that Deutsche's attempt to
exit the fix was likely to end without a buyer as U.S. lawsuits
alleging price-rigging by the five banks that set the benchmark
had turned potential suitors cold.
A source close to the matter said the bank gave two weeks'
notice and that it would cease to be part of the price-setting
process as of May 13.
The gold fix - a benchmark widely used across the industry -
is set twice a day by banks that get together over the telephone
to work out a standard price for the metal based on transactions
between their clients.
Deutsche said in January that it would sell its seat at the
fixing table, after its decision to withdraw from the bulk of
its commodities business. It had held the seat for two decades.
Industry sources said only a handful of candidates had
emerged to buy Deutsche's seat.
"It was a case of not being able to agree on terms," the
source close to the matter said on Tuesday.
Deutsche's resignation leaves Barclays, HSBC
, Bank of Nova Scotia and Societe Generale
to set the gold benchmark, and just HSBC and Bank of
Nova Scotia to set the silver benchmark.
The gold fix, along with other commodity benchmarks, has
come under increasing scrutiny by regulators in Europe and the
United States since the London Interbank Offered Rate (Libor)
manipulation case last year.
(Editing by Veronica Brown and Dale Hudson)