Precious metals surge as stocks drift
December 6th, 2010
06:50 PM ET

Precious metals surge as stocks drift

A look at highlights from the day's business news:

Precious metals outshine stocks

Precious metals like gold and silver took center stage Monday as few investors showed a willingness to jump into the stock market fray on a day with no major economic news on tap.

Stock trading volume was lower than average, and major indexes ended mixed after drifting around breakeven for most of the day. Stocks were reacting to Fed chairman Ben Bernanke's pessimistic outlook about the nation's economy.

The Dow Jones industrial average fell 20 points, or 0.2%, to end at 11,362.19. The S&P 500 fell 2 points, and the Nasdaq ticked up by 3 points.

Commodities - especially energy and metals - surged as stocks drifted. Gold futures for February delivery rose $9.90 - or 0.7% - to settle at a record $1,416.10 an ounce. Oil for January delivery settled at a new two-year high, edging up 19 cents, to $89.38 a barrel. Silver for March delivery also made strides, hitting a 30-year high of $30.05 an ounce during the trading session before easing off that high to settle at $29.74 an ounce.

Madoff trustee sues HSBC for $9 billion

The court-appointed trustee liquidating Bernard Madoff's former investment firm has filed a lawsuit against HSBC for $9 billion for allegedly aiding the most massive Ponzi scheme in history.

The trustee, Irving Picard, alleged that London-based HSBC Holdings PLC enabled Madoff's fraud "through the creation, marketing and support of an international network of a dozen feeder funds based in Europe, the Caribbean, and Central America," in a statement released Sunday.

He claimed that HSBC and the feeder funds funneled more than $8.9 billion to Madoff's fraudulent investment advisory business, and earned hundreds of millions of dollars despite being "well aware" of the fraud after accounting firm KPMG twice notified the bank of "serious risks."

"Had HSBC and the defendants reacted appropriately to such warnings and other obvious badges of fraud outlined in the complaint, the Madoff Ponzi scheme would have collapsed years, billions of dollars, and countless victims sooner," Picard said in the statement.

- CNNMoney.com reporters Julianne Pepitone and Hibah Yousuf contributed to this report.

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Filed under: Business • Economy
soundoff (7 Responses)
  1. phil

    If this headline read "Precious reality tv shows surge as Tiger Woods drifts" there would be over 1,000 posts here. Whoever told you that the economy is America's chief concern doesn't know America very well.

    December 6, 2010 at 10:25 pm | Report abuse |
  2. phil

    Madoff was a bigger threat to national security than Assange will ever be. Ditto ENRON. Ditto the (not our) Federal Reserve and the Bank for International Settlements. If the Federal Reserve were a movie, the sequel could be called The Siverado Savings and Loan Bunch Ride again.

    December 6, 2010 at 10:31 pm | Report abuse |
  3. mr. Satisfaction

    -so true

    December 7, 2010 at 6:47 am | Report abuse |
  4. phil @ mr Sat...

    -yup.

    December 7, 2010 at 7:13 am | Report abuse |
  5. Steve M

    I bought cardboard when it was 14 cents a ton.

    December 7, 2010 at 8:52 am | Report abuse |
  6. Richard in Texas

    If people had money to play with then people would be more interested.

    December 7, 2010 at 12:11 pm | Report abuse |
  7. Veritas

    Just another mediocre day with the money changers lets all invest like the republicans want us to instead of ssi lmao! how stupid do they think we are. oh yea stupid enough to put them back into power after only 2 years of democrats trying to shovel sh!t against the tide. Way to be loyal to your party, idiots. you know they dont want us to have anything what were you thinking. we went from Yes we can to never mind in two short years. bunch of turncoats.

    December 18, 2010 at 11:01 am | Report abuse |