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J.P. Morgan, HSBC sued for silver manipulation ( by "amassing enormous short positions.")
Marketwatch ^ | 10/28/2010 | David Benoit

Posted on 10/28/2010 8:00:36 AM PDT by WebFocus

Two separate lawsuits filed in federal court in Manhattan Wednesday allege that banks J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 37.60, +0.06, +0.16%) and HSBC Holdings Inc. /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 52.36, +0.37, +0.71%) manipulate the price of silver futures by "amassing enormous short positions."

The suits allege that by managing giant positions in silver futures and options, the banks have influenced the prices of silver on the New York Stock Exchanges' Comex Exchange since early 2008.

The Commodity Futures Trading Commission has been in the midst of a high-profile, two-year-old investigation of the silver market.

J.P. Morgan declined to comment on the lawsuits. HSBC wasn't immediately available to comment.

A suit filed by Peter Laskaris, who traded COMEX silver futures and options contracts, says the banks colluded on the silver market and informed each other of large trades. It says the banks used their large positions to effect the market by "flooding" it with a disproportionate number of orders.

The suit says J.P. Morgan and HSBC in August 2008 together held 85% of the net short position in silver and by the first quarter 2009 held $7.9 billion in precious metal derivatives.

According to the other lawsuit filed by Brian Beatty, who also traded silver contracts, says he was hurt by J.P. Morgan's alleged anticompetitive acts and market manipulation. Specifically, the suit said Beatty, a Connecticut resident, bought and sold silver contracts on Aug. 14 and Aug. 15, 2008, when the price of silver suffered an 18% drop from $14.86 to $12.23.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; News/Current Events
KEYWORDS: hsbc; jpmorgan; manipulation; silver

1 posted on 10/28/2010 8:00:43 AM PDT by WebFocus
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To: WebFocus

J. P. Morgan. Wow, the old boy must be spinning in his tomb. “Ye’re doin’ it wrrrong!”


2 posted on 10/28/2010 8:24:54 AM PDT by 668 - Neighbor of the Beast ( A window seat, a jug of elderberry wine, and thou.)
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To: WebFocus

Interesting I guess. Drive the market up on hype & then short it on hype. Reads like the old “pump & dump” days of boiler room strategies.


3 posted on 10/28/2010 8:28:24 AM PDT by SIRTRIS
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To: blam

Ping


4 posted on 10/28/2010 8:29:10 AM PDT by JDoutrider
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To: JDoutrider; WebFocus; jiggyboy
Angry Trader: JPMorgan And HSBC Used "Secret Signals" To Manipulate The Silver Market, And They Bragged About It
5 posted on 10/28/2010 8:32:44 AM PDT by blam
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To: SIRTRIS

Silver has been on a tear since the beginning of this year (It is at $23/oz or so the past week). Many are saying that in order for it to reach its all time high (inflation adjusted), it has to shoot above $30/oz.

But now, reading what JP Morgan and HSBC ( and who knows what other firms) are doing, I’m not so sure anymore...


6 posted on 10/28/2010 8:35:30 AM PDT by WebFocus
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To: WebFocus
JP Morgan Chase is one of the banks that make up the Federal Reserve.

How did a private banking cartel of the 12 largest banks in America get the keys to Americas vault?

Talk about the coyote watchin over the chicken pin!

These banks manipulate monetary policy to their advantage, reaping billions in profits off the backs of the American worker.

I cannot believe the only voice in Congress against these crooks is Ron Paul.

Say what’cha want bout the guy. Regarding the Federal Reserve and lack of audit and accountability...he’z spot on.

7 posted on 10/28/2010 8:38:25 AM PDT by servantboy777
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To: WebFocus

I dont find this difficult to believe in the least. Manipulation in the financial markets has become all too common


8 posted on 10/28/2010 8:39:17 AM PDT by freespirited (This tagline dedicated to the memory of John Armor, a/k/a Congressman Billybob.)
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To: servantboy777
"JP Morgan Chase is one of the banks that make up the Federal Reserve."

JP Morgan Chase is not a Federal Reserve Bank. It is a federally registered bank and all federally registered banks get to vote in their district's Federal Reserve Bank.

"How did a private banking cartel of the 12 largest banks in America get the keys to Americas vault?"

They didn't. Quit reading conspiracy stuff and learn how the Federal Reserve really works.

9 posted on 10/28/2010 8:45:30 AM PDT by DannyTN
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To: WebFocus
"The suit says J.P. Morgan and HSBC in August 2008 together held 85% of the net short position in silver and by the first quarter 2009 held $7.9 billion in precious metal derivatives."

How does that compare to what the Hunt brothers did?

10 posted on 10/28/2010 9:07:38 AM PDT by VanShuyten ("a shadow...draped nobly in the folds of a gorgeous eloquence.")
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To: WebFocus

The Hunt brothers order popcorn.


11 posted on 10/28/2010 9:53:26 AM PDT by Vaduz
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To: DannyTN; servantboy777

Well it’s now official...

In case you have not heard the news, the Federal Reserve has
asked its Primary Dealers (AKA the large Wall Street banks)
for suggestions on how big and how long QE 2 should be.

That’s right... the Fed has publicly stated that it takes its orders (masked as “suggestions”) from the banks, NOT the other way around. And do you think the banks will push for a SMALL QE 2 and STRONG US Dollar?

Yeah, me neither. Nor does the US Dollar itself for that matter.

Starting around 1:30 AM last night, the US Dollar futures sold off... hard. As I type this, the greenback is down over 1%... and Gold has broken out AGAIN.

The long-term US Dollar chart predicts a 50% collapse in its value the coming years. Once we take out the 2008 low this pattern is confirmed and the Dollar is DOOMED.

A Massive Head and Shoulders for the Buck

Few commentators actually understand how inflation works.
Virtually every day I read some “expert” opinion stating that inflation is good for stocks and that we’ll see a new bull market if the Dollar collapses.

This type of thinking is not only ignorant... it’s also VERY
dangerous to investors’ solvency.

Think about it... if inflation takes off then the cost of commodities like oil, steel, and iron, will explode. This in turn will mean operating costs erupting higher for companies... which means MUCH smaller profit margins.

JP Morgan Chase might not be the Federal reserve Bank, but with the great deference the Feds are giving to banks like them, I’m not even certain if the Fed is in charge of our monetary policy anymore.


12 posted on 10/28/2010 10:19:57 AM PDT by WebFocus
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