Skip to comments.Goldman Caught Manipulating Brent/WTI Spread: Penalty: $40,340
Posted on 06/20/2011 9:39:31 AM PDT by Nachum
For all those who believed that it was only JP Morgan who is manipulating the Brent-WTI spread, we regretfully have to inform you that the squid is once again front and center, having now been caught red-handed by none other than the ICE exchange, aka the home of Brent trading. From a just disclosed complaint: "On 28 January 2011 the Exchanges monitoring detected six notable price spikes in the April11 Brent/WTI spread, between 14:26 hours and 14:31 hours UK time. These were investigated and found to be the result of a limit order and several large market orders placed in quick succession by a GSF trader...In relation to the events described above, the Exchange alleged that GSF had breached the following Rule: "It shall be an offence for a trader or Member to engage in disorderly trading whether by high or low ticking, aggressive bidding or offering, or otherwise." The Exchange recommended to the Committee that summary disciplinary proceedings be commenced in regard to the above mentioned allegations. The Committee subsequently considered the matter in accordance with Summary Enforcement Rule E.7...The Committee considered the behaviour of GSF and its client to be a clear case of disorderly trading, in that the distorting price impact of the placement of such large orders in close proximity was not considered." But don't worry: the ICE naturally had to sugar coat its findings: "Having examined the instant messenger logs of the communication between the GSF trader and their client, the Committee found no evidence of intentional manipulation of the market; nevertheless it considered the breach to be of a serious nature." Well, thank god that all market manipulation occurs via perpetually recorded instant messaging. It would be inconceivable that Goldman and its "client" may have found a different way to hatch plans to defraud investors than one which involves on the record messages.. Simply inconceivable... And preposterous.
Bottom line: the fine for Goldman Sachs: £25,000
And now we return to your regularlyl scheduled market manipulatin farce courtesy of Goldman and the central banks.
‘Disorderly trading’, eh? That sounds as useful to financial regulators as ‘disorderly conduct’ is to police officers. You can arrest just about anyone for anything.
Yeah, I SUUUUURE this will keep them from doing it again in the future...
What a joke..
Yeah, I'm SUUUUURE this will keep them from doing it again in the future...
What a joke..
Brent/WTI is the least of the manipulations routinely carried out by Goldman. Watch what happens to gold and silver any time either one reaches key price levels. It is not widely known, but narrowly known, that Goldman and Morgan are both subsidized by the Fed itself to keep precious metals prices in check. Reason? Because precious metals keep trying to tell the truth about the worthlessness of the dollar.
The Fed simply can’t have that; so they do whatever is necessary to sustain the fiction.
But a measley $40K fine for what amounts to a felony?
If Goldman were a person, they could find $40K in their couch cushion, or dropped in their shoe, or in the “Need $40k, take $40k” tray at McCaviar’s. They wouldn’t stoop to pick up $40k from the sidewalk.
Not that I have any difficulty believing that, but can you direct me to any good sources for verification of it?
Goldman = Enron when it comes to sheer corruption and manipulation and all they get is a $40,000 fine? I want to see a mass of Goldman people heading to frakin’ jail like yesterday! =.=
And, to think we bailed out these ba$tard$.
Excellent business decision to subtract $40k from profits.