JP Morgan in Fed criminal probe on silver manipulation

[*T*]

Well I thought this was all BS, but apparently the feds are taking it seriously...

NY Post article

Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice's Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.
The probes are far-ranging, with federal officials looking into JPMorgan's precious metals trades on the London Bullion Market Association's (LBMA) exchange, which is a physical delivery market, and the New York Mercantile Exchange (Nymex) for future paper derivative trades.
JPMorgan increased its silver derivative holdings by $6.76 billion, or about 220 million ounces, during the last three months of 2009, according to the Office of Comptroller of the Currency.
Regulators are pulling trading tickets on JPMorgan's precious metals moves on all the exchanges as part of the probe, sources tell The Post.
JPMorgan has not been charged with any wrongdoing.
The DOJ and CFTC each declined to comment, as did JPMorgan.
The investigations stem from a story in The Post, which reported on a whistleblower questioning JPMorgan's involvement in suppressing the price of silver by "shorting" the precious metal around the release of news announcements that should have sent the price upwards.
It is alleged that in shorting silver, JPMorgan sells large blocks of silver option contracts or physical metal -- actions that would bring down the price of the metal -- closely following news that would otherwise move the metals higher.
Last week, The Post got a telling e-mail the Justice Dept. sent to a concerned investor. "Thank you for your e-mail regarding allegations that JPMorgan Chase, and perhaps other traders, are manipulating the silver futures market," the e-mail read.
Telling, indeed, as the concerned investor, in an e-mail to Justice's Anti-trust division, never mentioned any companies or traders.


Read more: http://www.nypost.com/p/news/busines...#ixzz0nQxlAJPj

PS, just bought my first couple kg silver off the back of this..

[Jay]

Re: JP Morgan in Fed criminal probe on silver manipulation

If these investigations are genuine attempts at going after corruption I am more hopeful for the future. The Feds are after JP and the SEC is after Goldman. Time will tell if it is a pony show and what comes of it. The horse is already out of the barn, convicting the rustlers would make my day.

[BlackVoid]

Re: JP Morgan in Fed criminal probe on silver manipulation

It's Goldman's revenge nothing more. It seems that there is a war within the elite.

There will be no convictions in either case, but JPM and GS will have to commit fraud a bit more cautiosly in the future. Or pay more to the politicians.

And how could it have been BS, when JPM is shorting the quantity equivalent of about a year of silver production?

[gnk]

Re: JP Morgan in Fed criminal probe on silver manipulation

It's Goldman's revenge nothing more. It seems that there is a war within the elite.

There will be no convictions in either case, but JPM and GS will have to commit fraud a bit more cautiosly in the future. Or pay more to the politicians.

And how could it have been BS, when JPM is shorting the quantity equivalent of about a year of silver production?

I would agree with Austin-Fitts' view:

http://solari.com/blog/?p=7223

I always thought the National Security Complex would step in as things got out of hand. Much like the Praetorian Guard in ancient Rome. When an Emperor got out of hand with spending and enriching his cronies at the expense of the Empire's security - the Praetorian Guard would step in. (Not that their solution was always better)

[Rajiv]

Re: JP Morgan in Fed criminal probe on silver manipulation

I would agree with Austin-Fitts' view:

http://solari.com/blog/?p=7223

I always thought the National Security Complex would step in as things got out of hand. Much like the Praetorian Guard in ancient Rome. When an Emperor got out of hand with spending and enriching his cronies at the expense of the Empire's security - the Praetorian Guard would step in. (Not that their solution was always better)

I do see a reference to the Office of Naval Intelligence in the Solari note -- however, there appear to be no links to substantiate that. Did I miss something?

[gnk]

Re: JP Morgan in Fed criminal probe on silver manipulation

I do see a reference to the Office of Naval Intelligence in the Solari note -- however, there appear to be no links to substantiate that. Did I miss something?

I'm guessing she doesn't want to reveal, or it's conjecture.

But here's another more recent example:

After the fall of the USSR, Yeltsin (the drunkard) allowed slick Willie and Wall Street to rape his country for the benefit of the Oligarchs and Wall Street. The KGB prepped Putin and somehow got Yeltsin to annoint him as successor - and then, the Oligarchs were treated like rats in a cage when Putin asserted his power.

I have no opinion of Putin, and I'm not celebrating what he did. In the end, he just enriched himself and his boys. But, he did think more in terms of Russia's interests than Yeltsin ever did.

My view is that all governments have powerful/influential long serving bureaucrats - escpecially in National Security. These are the people that make Democrats act like Republicans, and Republicans act like Democrats once they become President (in terms of National Security) - campaign promises be damned. Their influence shouldn't be underestimated.

Another person I follow is James Rickards. He has publicly (on CNBC no less) criticized Goldman Sachs, supported the gold standard, criticized Wall Street, mentioned the JPM silver issue, etc... His consulting company works with the upper echelons of the US Military.

I don't think it is a stretch to say that most iTulipers believe Wall Street is not only endangering our deomcracy, but our national security as well. Think about it. There has to be a counterweight within government that agrees, and can act. That counterweight in my view is the Military/National Security complex. They usually sit back and let the pigmen politicians and wall streeters screw the public - but they will not sit back if they believe that the US's position in the world is at risk.

Just my humble opinion - fire away.

[aaron]

Re: JP Morgan in Fed criminal probe on silver manipulation

Isn't the U.S. gold held at Fort Knox? Who really controls the guns & gold? No, I do not think it is a stretch to believe that there are real patriots in the military who see things the way they are.

[blazespinnaker]

Re: JP Morgan in Fed criminal probe on silver manipulation

I dunno. Could be a coincidence in that that Buffet was always going to be a part of the show.

I would agree with Austin-Fitts' view:

http://solari.com/blog/?p=7223

I always thought the National Security Complex would step in as things got out of hand. Much like the Praetorian Guard in ancient Rome. When an Emperor got out of hand with spending and enriching his cronies at the expense of the Empire's security - the Praetorian Guard would step in. (Not that their solution was always better)

[*T*]

Re: JP Morgan in Fed criminal probe on silver manipulation

I don't think it is a stretch to say that most iTulipers believe Wall Street is not only endangering our deomcracy, but our national security as well. Think about it. There has to be a counterweight within government that agrees, and can act. That counterweight in my view is the Military/National Security complex. They usually sit back and let the pigmen politicians and wall streeters screw the public - but they will not sit back if they believe that the US's position in the world is at risk.

Are you advocating a military coup to counter the financial one?

[gnk]

Re: JP Morgan in Fed criminal probe on silver manipulation

Are you advocating a military coup to counter the financial one?

God no! I wasn't being that literal. In other countries, its more obvious, here, thankfully, it's not.

What I am trying to say is that there are always competing views in government - that all is not harmonious in any organization, especially one as large as the US Gov't. And that behind the scenes arm twisting between branches, departments and organizations goes a long way. Self preservation and maintaining influence being the most important raison d' etre.

When it comes to watching any government - the iceberg rule applies - we only see 10% of the action. And most of what we see and hear are lies. The rest is underwater. That's where the real armtwisting - bearaucratic fighting occurs.

How did the SEC and FBI all of a sudden change course? Who/What is behind this? Where were they during the housing crisis when whistleblower after whistleblower was sidelined and ignored? Didn't Obama recently say that anger at the Banks is unjustified and due to people's jealousy of their success? Who's side is Obama really on? Is he even relevant when it comes to this?

What I am saying is that I wouldn't be surprised that if we get real reform, and if there is one organization that could address it by influencing other organizations (FBI/SEC/etc...) to do their job - it would be the National Security complex. You think they only "influence" foreign governments, and not ours? And why would they do this? Because it's no longer just a fairness issue between the plebs and the plutocrats, but a national security issue.

If one believes everything that was taught in High School Social Science/Government/Civics is exactly how things play out, then this will seem like tinfoil conspiracy. I don't see it as Alex Jonesy conspiracy - I see it as a normal dynamic that occurs in any large organization.

[cindykimlisa]

Re: JP Morgan in Fed criminal probe on silver manipulation

All it takes is one true Óscar Romero

Cindy