Skip to comments.Ex-Goldman trader blows whistle on silver and gold market manipulation by JP Morgan (Done for Fed)
Posted on 04/11/2010 8:17:32 AM PDT by JustTheTruth
Metal$ are in the pits
Posted: 2:10 AM, April 11, 2010
There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.
Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said. <...>
"HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.
<...> Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.
Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal. ... [exerpt only]
(Excerpt) Read more at nypost.com ...
This worrisome story is gathering momentum. I wonder what Monday will bring?
Wasn’t it Jefferson who predicted a fed bank would do this?
The Fed’s middle name is “manipulation.” That’s their job, really. As for JP Morgan... So what? They were just doing their client’s bidding.
The plunge protection team at work. Ever notice how the market rallies at the end after starting down all day?
This is related to our recent discussion.
why would the fed worry about the price of gold. the US has one of the world’s biggest gold reserves. so if the dollar declines in value against gold—the US gold reserves increase in value. isn’t this a wash?
Socialism...cheap but there isn’t any.
Has anyone seen it lately???
“Ever notice how the market rallies at the end after starting down all day?”
....for the last couple of years now the DOW is all about what happens the last hour...if there’s gonna be action, that’s when it happens.
Related email that I received the other day:
The Executives’ Club of Chicago cordially invites you to join us at our luncheon as we honor
Chairman & Chief Executive Officer JPMorgan Chase & Co.
as The 2010 International Executive of the Year
Jamie Dimon is Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co., a global financial services firm with assets of $2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.
Dimon became CEO on January 1, 2006 and one year later also became Chairman of the Board. He was named President and Chief Operating Officer upon the company’s merger with Bank One Corporation on July 1, 2004.
Dimon joined Bank One in Chicago as Chairman and CEO in 2000, and engineered a dramatic turnaround - taking the bank from a half-billion-dollar loss in 2000 to record earnings of $3.5 billion in 2003 - before its merger with JPMorgan Chase.
Dimon began his career at American Express Company, serving as Assistant to the President from 1982 until 1985. A year later, he became a key member of the team that defined the strategy for Commercial Credit Company when the consumer lending company was spun off from Control Data Corporation. He served as Chief Financial Officer and then President.
Commercial Credit made numerous acquisitions and divestitures, including acquiring Primerica Corporation in 1987 and taking its name. The firm then acquired The Travelers Corporation in 1993, becoming Travelers Group. Dimon served as President and Chief Operating Officer of Travelers from 1990 through 1998 while concurrently serving as Chief Operating Officer of its Smith Barney Inc. subsidiary. He became CEO of Smith Barney in January 1996 and then co-Chairman and Co-CEO of the combined brokerage following the 1997 merger of Smith Barney and Salomon Brothers.
In 1998, Dimon was named President of Citigroup Inc., the global financial services company formed by the combination of Travelers Group and Citicorp.
A summa cum laude graduate of Tufts University, Dimon earned an MBA degree from the Harvard University Graduate School of Business, where he was a Baker Scholar. He serves on the boards of directors of a number of non-profit institutions, including the Federal Reserve Bank of New York, the Clearing House, the United Negro College Fund and Harvard Business School. Additionally, he serves on the executive committee of the Business Council, Business Roundtable and the Partnership for New York City, and is a member of the Financial Services Forum, Financial Services Roundtable and Council on Foreign Relations.
Host Committee Chairman
David B. Speer, Chairman & Chief Executive Officer, Illinois Tool Works Inc.
Host Committee Members
V. James Marino, President & Chief Executive Officer, Alberto Culver Company
Loretta Kuss, Director, Chicago Passenger Sales, American Airlines
W. Robert Reum, Chairman, President & Chief Executive Officer, Amsted Industries
Patricia A. Woertz, Chairman, Chief Executive Officer & President, Archer Daniels Midland Company
John J. Conroy, Jr., Chairman of the Executive Committee, Baker & Mckenzie International
Robert L. Parkinson, Jr., Chairman, Chief Executive Officer & President, Baxter International Inc.
Paul Bascobert, President, Bloomberg BusinessWeek
John A. Edwardson, Chairman & Chief Executive Officer, CDW Corporation
Scott C. Swanson, President & Chief Executive Officer, Charter One Bank, Illinois
William J. Brodsky, Chairman & Chief Executive Officer, Chicago Board Options Exchange, Inc.
Craig S. Donohue, Chief Executive Officer, CME Group
Brian P. Simmons, Founder & Partner, Code Hennessy & Simmons, LLC
Richard A. Chaifetz, Chairman & Chief Executive Officer, ComPsych Corporation
Ilene S. Gordon, Chairman, President & Chief Executive Officer, Corn Products International
Adam J. Gutstein, President & Chief Executive Officer, Diamond Management
& Technology Consultants
David W. Nelms, Chairman & Chief Executive Officer, Discover Financial Services
Rahul D. Shah, President & Chief Executive Officer, DSR Management, Inc.
Tonise Paul, President & Chief Executive Officer, Energy BBDO
Kaarina Koskenalusta, President & Chief Executive Officer, The Executives’ Club of Chicago
John W. Rowe, Chairman & Chief Executive Officer, Exelon Corporation
Chip Reeves, Chicago Market President, Fifth Third Bank Chicago
Russell P. Fradin, Chairman & Chief Executive Officer, Hewitt Associates Inc.
Anita Sabatino, Managing Director, JPMorgan Chase & Co., IBM
Charles Cannon, Chairman & Chief Executive Officer, JBT Corporation
Colin Dyer, President & Chief Executive Officer, Jones Lang LaSalle
David W. Fox, Jr., Vice Chairman, JPMorgan Chase & Co.
E. Roanald Culp, Partner & Managing Director, Ketchum
William E. Saxelby, President & Chief Executive Officer, Landauer Inc.
James C. Tyree, Chairman & Chief Executive Officer, Mesirow Financial
Frederick H. Waddell, Chairman & Chief Executive Officer, Northern Trust Corporation
Thomas j. Quinlan, III, President & Chief Executive Offcer, RR Donnelley
John W. Estey, President & Chief Executive Officer, S&C Electric Company
Kevin T. Rafferty, President of Wealth Management, SunGard Transaction Network
Larry D. Richman, President & Chief Executive Officer, The Private Bank and PrivateBancorp
Glenn F. Tilton, Chairman, President & Chief Executive Officer, UAL Corporation
Keith E. Williams, President & Chief Executive Officer, Underwriters Laboratories Inc.
Richard W. Gochnauer, President & Chief Executive Officer, United Stationers Inc.
Richard C. Vie, Chairman Emeritus, Unitrin, Inc.
John R. Ettelson, President & Chief Executive Officer, William Blair & Company, LLC
Thursday, April 22, 2010
Reception, 11:45 am Luncheon, 12:30 pm
The Fairmont Chicago, Imperial Ballroom, B2 Level
200 N. Columbus Drive, Chicago, Illinois
Right it is a setup by the government to fake the prices. They buy in to hold up the Dow.
ping - thought of you
No, we live in a global market. The $$ is subject to the revaluation of all currencies against gold.
There is going to be inflation
We are told these are ludicrous conspiracy theories. Now who are the real loons?
So when the precious metal traders, their bosses, and JP Morgan exectuives make their nice "fat cat" bonuses politicians so often like to publically decry, it's courtesy of Joe SixPack who just got a pink slip.
AND the politicians knew this all along.
Is it REVOLUTION time yet??
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.