by Volubrjotr

The Collapsing Of The Deep State Richest 1%

CFTC Created to Cover Up the Manipulation
When the computer rigging programs were implemented there needed to be some kind of cover to ensure secrecy and maintain a false confidence in free markets. In 1974 Congress passed the Commodity Futures Trading Commission Act that overhauled the Commodity Exchange Act and created the CFTC as an independent agency with powers greater than those of its predecessor agency, the Commodity Exchange Authority.

Silver

From that moment the CFTC has been run by board appointees that showcased a revolving door of Wall Street insiders ensuring that the computer market rigging operations were not interfered with. The only notable exception is Brooksley Born who was fired by President Clinton when she found out the truth about our supposed “free markets” and tried to warn everyone. (see The Warning)
http://www.pbs.org/wgbh/pages/frontline/warning/view/

Listen to Brooksley Born explain the problems in her own words when she accepted her JFK Profiles in Courage Award in August 2009.
http://www.youtube.com/watch?v=0dVcic7czQ8&feature=channel

A while back I gave up my fight against the CFTC as I determined that they were NOT protecting the best interest of the investor but rather they were protecting the computer market rigging operations and the people involved. Here is one of my last articles on the subject:
Road to Roota III — Who’s the little man behind the curtain?
http://www.roadtoroota.com/public/133.cfm

Historically, when any price rigging operation stops the violence of the ensuing price changes are determined by the length and scale of the manipulation as well as the underlying fundamentals of the item being rigged. Take for example the famous 1980’s case of the Hunt brothers trying to corner the silver market. From early 1974 the Hunt brothers started accumulating silver which ultimately drove the price from $6/oz to $50/oz until January 21, 1980 when the CFTC finally pulled the plug on their operation. Within 2 months the price of silver plummeted from $50/oz to $10/oz and the silver price was back under control of the US Government and Banking Cabal. An excellent account of what transpired can be found here:
http://www.gold-eagle.com/editorials_04/laborde012704.html

This account shows what can happen to the price of a manipulated commodity when the price manipulation is ended. In the case of the Hunt Brothers the manipulation lasted 6 years and involved approximately 130M oz of physical silver and 90M oz of COMEX silver contracts. This was an attempt at a Long Silver price manipulation but it was going on while the Short Silver Official manipulation was going on trying to keep the price down. The only way the Hunt’s accumulated so much silver without the price heading into the many thousands of dollars was the official computer price suppression operation.

The manipulation was ended when the CFTC stopped all COMEX Silver purchases and allowed only silver liquidation sales instantly driving the price down. In 1980 the US Government held 3B oz of silver and in order to maintain the lower silver price levels they sold the entire stock of silver into the market over the next 25 years. That excess supply combined with other governments divesting their silver was enough to continue the price suppression scheme for almost 40 years. That supply is now gone.

One Bank has the Hot Potato
So here we are 40 years after the official manipulation of silver began and the world is finally awakening to the situation. The CFTC, having investigated silver manipulation allegations twice previously, has had an open investigation into silver market manipulation for over 3 years. They have even stated that the investigation was moved to the “Enforcement Division” within the CFTC which pretty much tells you what the conclusion of the investigation revealed. The FBI has separately stated that they are investigating JP Morgan for silver market manipulation.
These two facts and the absolute SILENCE from JP Morgan were strong indicators that the long term manipulation of silver was about to end but on April 5, 2012 JP Morgan broke their silence about silver manipulation. The “Wicked Witch” of silver, Blythe Masters, (the head of JPM Commodities and the creator of the mammoth Credit Default Swaps complex) came on a scripted CNBC interview and denied that JP Morgan manipulates the silver price.

JPMorgan Not Speculating on Commodities: Blythe Masters

Of course she is lying through her teeth when she claims that JP Morgan only has neutral positions. The obvious “tell” is that JPM booked almost $3 BILLION in revenue from their commodities division in 2011! Either they have the highest commission structure in human history or she is LYING THROUGH HER TEETH! As a matter of fact, Blythe’s boss Jamie Dimon recently claimed that they need to get rid of the Volcker Rule so they can continue to offer their customers THE LOWEST prices possible…
Dimon on Price Wars, Volcker Rule, Stock Prices

Here’s the specific quote just over 2:00 into the piece: “When the client calls up JP Morgan, if we don’t give them the best price then we don’t get the business.”
So tell me Blythe…how did you make $3B off your commodity clients by offering them “the best price” and NOT trading for your own book?!
Looks like Blythe has cracked the age old secret for turning lead into gold…PILE ON THE PAPER DERIVATIVES!
*The REASON that Blythe gave this article is that they are about to be BUSTED for silver market manipulation and she is trying to start the defense early…nice try Blythe but you are about to be MELTED!
Ted Butler of Butler Research has been exposing the official manipulation of Silver for the past 25 years. His research was instrumental in exposing the gold/silver leasing operations and the massive concentrated short positions in both gold and silver. On September 3, 2008 Butler published a report entitled Fact Versus Speculation where he showed how one bank, JP Morgan Chase, took over the Bear Stearns Silver COMEX Short position of 30,000 contracts or 150M oz.
http://www.investmentrarities.com/ted_butler_comentary09-02-08.shtml

Since this report was published JP Morgan has continued its silver market rigging antics in an effort to get out of this precarious short position. After Butler exposed JPM as the culprit there have been wild orchestrated swings in the price of silver as JPM attempts to cover their massive COMEX short position. The price of silver has risen from $13 to currently over $30 in this time frame and the size of the short position held by JP Morgan has gyrated wildly between 30k and 40k contracts as they desperately try to shake the longs to cover their shorts. But even with this rise in price the short position is STILL around 20k contracts according to the CFTC’s latest Bank Participation Report.
http://www.cftc.gov/dea/bank/deaApr12f.htm

Add to this various silver market manipulation tools such as naked shorting silver ETF’s, falsifying COMEX warehouse data, unallocated silver, leasing and swapping metal and you have a situation that dwarfs the Hunt brothers case.
Of course, JP Morgan is no ordinary bank because they are also the LARGEST derivative holder in the WORLD at over $75 TRILLION! Do remember Warren Buffett calling derivatives “Weapons of Mass Financial Destruction”? Well, JP Morgan holds the mother load when it comes to silver too with over $19 BILLION of Silver derivative contracts!
http://www.occ.treas.gov/topics/capital-markets/financial-markets/trading/derivatives/dq311.pdf

(OCC Report table 9: Classified as “PREC METALS”… might be a little platinum but not much).
This report was for the quarter ending September 2011 when the price of silver was slammed down to $30 from $42/oz at the beginning of Sept. Interesting: Had silver NOT been slammed down almost 30% in Sept 2011 then JPM would have had to declare silver derivative of close to $25B instead of just $19B. Talk about “painting the tape”!
At $30/oz silver the JPM $19B silver derivative position is representative of over 630M ounces of paper silver.

Sherrie Questioning All

Understanding Silver Price Manipulation

*Audio read by Tamz Broderick

Is There Silver Price Manipulation?

Let’s start with a question. What should the silver market look like? In the broad scope of markets the silver market is relatively tiny. In my opinion it should be a sleepy “quaint” little market. Supply is fairly stable varying about 5% annually. There are never any huge silver discovery announcements. Silver is mostly mined as a byproduct of mining for other metals. There’s only a hand full of dedicated silver mining companies. Industrial demand is fairly constant over the years. Investment demand is growing but official numbers aren’t that huge.

You’d think that in a market like this the miners and silver buyers could easily come together and transact business discovering the “Fair Market Value” of silver.

The Silver market should be a “QUAINT LITTLE MARKET”.

But the reality is much different…

Historically, when any price rigging operation stops the violence of the ensuing price changes are determined by the length and scale of the manipulation as well as the underlying fundamentals of the item being rigged. Take for example the famous 1980’s case of the Hunt brothers trying to corner the silver market. From early 1974 the Hunt brothers started accumulating silver which ultimately drove the price from $6/oz to $50/oz until January 21, 1980 when the CFTC finally pulled the plug on their operation. Within 2 months the price of silver plummeted from $50/oz to $10/oz and the silver price was back under control of the US Government and Banking Cabal. An excellent account of what transpired can be found here:
http://www.gold-eagle.com/editorials_04/laborde012704.html

Sherrie Questioning All

1) Massive Volatility — The silver market is characterized by larges upward moves over time with huge and sudden downward slams. There are massive volumes traded back and forth. Fortunes are made and lost. There’s blood in the streets after each market slam. In 2008 the price dropped from $21 to below $9 in a matter of months. On May 1st silver was violently slammed down from $50 to $35 in a matter days. It was called a “Drive By Shooting” by many in the silver investment community. There is an insane amount of volatility. The Silver market is no place for you to invest if you have a weak stomach.

2) Off hours trading – Most of the downward volatility begins in the off hours of trading before or after the large markets are open. The May 1st “Drive-By-Shooting” started in the middle of the night on a Sunday and dropped 10% instantly…who trades like that? If you had a huge long position in silver that you wanted to unload would you do it in the afterhours market to maximize your price? There was no news to spook the market. This was a blatant manipulation and was obvious to all of us.

3) COMEX Short Concentration — Ted Butler has been exposing the Short concentration issue for 20 years and we all know of his work. The kicker for me was that in November 2009 (2) traders or less (likely 1) held 68% of the Commercial Net Short. 68% of the short was held by one trader! The CFTC has just passed the Position Limits rule and hopefully this will put an end to the excessive short concentration in the future but we’ll see.

4) Multiple Ownership Claims — Who owns the physical silver these days? With so many silver derivatives there are many options for bullion banks and others to work a Fractional Reserve metal storage system. Silver certificates, swaps, leases pooled accounts, options, ETF shorting and on and on. In 2007 Morgan Stanley was sued for charging storage fees on silver certificates although they didn’t hold the physical silver in inventory. It was settled out of court but their defense was that the practice of selling silver certificates and not holding the physical metal was “Industry Standard Practice”. What about the silver iShares ETF? How many claims of ownership are on that silver? It’s unknown but we do know that there are 20M shares short at the moment. There are currently investors in SLV who bought 20M shares expecting the ETF to deposit 20M ounces in inventory but that metal was shorted instead of placed in inventory.

5) Exchange Margin Requirements — The latest silver slam was assisted by huge margin requirement increases by the CME to squeeze the weak handed shorts. This was a blatant manipulative move by the CME and it added significantly to the downward plunge in the price of silver…which is illegal by the way. Craig Donahue, the CEO of the CME, had to come on TV to try and justify their actions. He said “Margin requirements are really intended to make sure that we have the ability to PROTECT all participants in the clearing house because WE ARE THE GUARANTOR to every buyer and seller.” So margins were increased to PROTECT market participants. At $50/oz who needed protection? Clearly the longs didn’t need protection. It was the shorts that were being protected from default because they sold silver derivatives on metal they didn’t have. Get out of the COMEX. If you play in their market you play by their rules!

RON PAUL

*Ron Paul

6) 3rd CFTC Silver Investigation — First two silver investigations were a joke. They were announced and closed at the same time with no finding of manipulation. The CFTC’s main conclusions were that the price was going up so there can’t be downward manipulation and the London Bullion Market was a “physical market” and is in line with the COMEX. Give me a break. The LBM will settle 50B ounce of supposedly physical silver this year! There’s nothing physical about that market.

7) Whistle Blowers — Ok. We’ve finally arrived at that SILVER BULLET to put an end to the manipulation once and for all. We have a whistle blower. Andrew Maguire. I’ll say it again Andrew Maguire. It’s strange but I keep thinking of that movie Jerry Maguire when I hear his name? I think if comes from a drinking game in college where we had to drink every time we heard his name in the movie…which is a lot. Now every time I hear Jeffrey Christian or Jon Nadler saying there’s no silver market manipulation I hear in my head…Andrew Maguire, Andrew Maguire. Yes, the Andrew Maguire revelations at the CFTC meeting in March of 2010 was the smoking gun to END the silver manipulation debate. He told the CFTC who was doing it, why they were doing it, how they were doing it, when they were going to do it next and it happened just like he said. Case closed. I’m sure Bill Murphy will elaborate on this tomorrow.

But there was another very important whistle blower inside of the CFTC itself. CFTC Enforcement Judge George Painter said in his retirement letter…“There are two administrative law judges at the CFTC, myself and the Honorable Judge Bruce Levine. On Judge Levine’s first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant’s favor. A review of his rulings will confirm that he has fulfilled his vow.”

8) YES there is Manipulation – As we all expected. The game is rigged. From the regulators to the bullion banks to the exchanges to our elected officials our “Quaint Little Silver Market” is 100% rigged.

So now that we know the silver market is rigged the next logical question is…

“How Do They Do It”?

The tools of manipulation are:

1) COMPUTERS

2) DERIVATIVES

By utilizing Computers and Derivatives there is no limit to the amount of manipulation and price suppression that is possible in the silver markets.

* In the early 1960’s John Kemeny, a childhood friend of Alan Greenspan, invented the first sharable computer language called “BASIC”.

* In the 1970’s Alan Greenspan used this programming language to develop the first financial computer programs (and rigging programs) as head of the Council of Economic Advisers.

* By the late 1970’s most large brokerage houses had computer trading platforms.

* Over the years brokerage houses, investment banks and hedge funds hired math wizards known as “quants” to develop computer rigging programs and High Frequency Trading platforms.

* Today over 95% of all trades in every market around the world are computer program generated.

* Due to the massive daily volumes I estimate that 99% of all trades in the silver market are generated by computer programs.

KEY: Silver traded on the COMEX and LME are not related to the physical silver market but rather are Silver Derivatives traded back and forth by computer programs to artificially set the price of silver.

Silver Derivatives

*Definition – A derivative instrument is a contract between two parties that specifies conditions under which payments, or payoffs, are to be made between the parties. It’s like a side bet. Futures, options, swaps, leases etc are all derivative contracts.

The concept behind derivatives is to allow a company to hedge their risk. For example to hedge a credit risk of a bank loan a lender can purchase a Credit Default Swap contract that will payout if the borrower defaults. Hedging risk is a good thing right? Not always. In reality the risk of default does not go away but rather is transferred to another party and a new risk is created in the form of a counter party risk of the CDS issuer defaulting. The issuer of that CDS can hedge their new risk by purchasing a CDS from another issuer and so on. Although the initial concept of a derivative is to hedge INDIVIDUAL risk, the more and more derivatives that are created off the first transaction greatly increases the TOTAL risk there is in the overall market.

In the last 20 years derivative contracts have ballooned into the hundreds of trillions of dollars on a notional value basis. In 2008 the inherent danger in this growth in overall risk became painfully apparent with the global crash of the financial markets.

Warren Buffet was correct in identifying derivatives as “WEAPONS OF MASS FINANCIAL DESTRUCTION”.

If there was any one person to blame for the 2008 financial crisis it was a woman named Blythe Masters out of the JP Morgan “Financial Products Division” in London. She was the creator and promoter of the Credit Default Swap market and built it up over 15 years into a monstrous 50 Trillion dollar market by 2008 when it all fell apart. The destruction this amount of “risk hedging” ended up costing the world was almost incalculable. Today, even after all the losses and bankruptcies, the Credit Default Swap market stands at over 30 trillion dollars.

So what ever happened to this woman who destroyed the world’s financial markets with derivatives…

1) Blythe went from running the gigantic CDS derivative market to running the gigantic commodity derivative market for JPM.

2) Based on the COMEX daily silver volume averages over 120B ounces of silver derivatives will trade in 2011. 120B ounces! Stunning number considering there’s a total of just over 700M ounces mined every year. AND THIS IS JUST ONE EXCHANGE! COMEX open interest means nothing. The price of silver is determined on a trade by trade basis. The amount of daily volume on the COMEX is staggering.

3) The LBM will settle over 50B ounces of (supposedly physical) silver this year. These are net ounces counted at the end of each day. During the day many multiples of this amount trade hands. I’m conservative and I’ll say 5x the amount or another 250B ounces of silver derivatives.

4) Including all markets and unreported OTC derivatives I estimate that the total worldwide silver derivative contracts traded in 2011 will amount to 500B ounces. 500B ounces!

5) Let’s say that 500M oz of the 700M oz mined every year have silver derivatives attached to them for some reason. That equates to silver derivatives totaling 1,000x the underlying commodity. There is no legitimate market function of silver derivative trades for the 1,000x derivative leverage. In the March 2010 CFTC hearings commissioner Gensler asked Jeffery Christian a very important question at the very end of that hearing. That question was “What are the billion banks hedging on the other side?” His answer was “a tremendous amount of things” and it clearly didn’t satisfy Chairman Gensler.

6) The truth is that the price discovery mechanism for silver has been destroyed by a mountain of silver derivatives. Remember that “Quaint Little Silver Market” we talked about earlier? It means absolutely NOTHING when it comes to discovering the true Fair Market Value of silver as long as the silver market riggers are allowed pile on 500 billion ounces of silver derivatives every year.

Just like the Credit Default Swap bubble that burst and almost destroyed the global financial system in 2008 the silver derivative bubble is an accident waiting to happen.

That’s it for me but let me leave you with a little Silver Manipulation sing-a-long…

http://www.roadtoroota.com/public/720.cfm

Thank you for your attention and…

May the Road you choose be the Right Road.

Bix Weir

www.RoadtoRoota.com

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Ron Paul Held Up This Piece Of Silver When He Was Raking Ben Bernake Over The Coals In A Congressional Hearing!

COME ON PEOPLE! I’m starting to think my $8,250/oz silver call is too conservative!

What’s going to happen when JP Morgan’s derivative monument comes crashing down?
Here’s where I get to $8,250 per oz for silver.
1) I know silver has not been freely traded in 40 years so today’s price if irrelevant.
2) I, like many, estimate there is only about 1B ounces in above ground physical silver for investment purposes.
3) I, like many, estimate there is only 5B ounces of above ground physical gold for investment purposes.
4) If the price of gold is not manipulated, like the banks claim, then the price of silver should be 5x the price of gold due to its supply/demand fundamentals.
CONCLUSION: The price of gold is around $1,650/oz so the true Fair Market Value of Silver should be around 5x the price of gold or $8,250/oz in a FREE market!
It’s simple, if you remove ONE BANK from the supply side of the equation the price of silver will SKYROCKET overnight.
ONE BANK controls the price of silver.
ONE BANK controls the fate of our monetary system.
ONE BANK is behind the curtain pulling the silver manipulation levers.
ONE BANK has control over a nation that was founded by “We the People”.
ONE BANK MUST GO AWAY TO SAVE OUR LIBERTY!
May the Road you choose be the Right Road.
Bix Weir www.RoadtoRoota.com

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Guy Fawkes

JP MORGAN WHISTLEBLOWER STAYS ANONYMOUS FOR NOW!

Rampant silver manipulation?  Rampant gold manipulation?  Rampant LIBOR manipulation?  Hiding MF Global client assets?  These are all happening at JP Morgan according to an open letter reportedly written by an anonymous employee of the firm.  The whistleblower also warns of a “cascading credit event being triggered” by derivatives related to Greek government debt.  UnlikeGreg Smith at Goldman Sachs, this whistleblower has chosen to remain anonymous for now.  According to the letter, the whistleblower is still an employee of JP Morgan and has not resigned.  But that does make it much more difficult to confirm what he is saying.  With Greg Smith, we know exactly who he is and what he was doing at Goldman.  As far as this anonymous whistleblower is concerned, all we have is this letter.  So we must take it with a grain of salt.  However, the information in this letter does agree with what whistleblowerssuch as Andrew Maguire have said in the past about silver manipulation by JP Morgan.  And this letter does mention Greg Smith’s resignation from Goldman, so we know that it must have been written in the past few days.  Hopefully this letter will cause authorities to take a much closer look at the crazy things that are going on over at JP Morgan and the other big Wall Street banks.

This anonymous letter was addressed to the CFTC, but unfortunately it looks like the CFTC has already chosen to ignore it.

The original letter from this anonymous whistleblower has already been taken down from the CFTC website. When you go there now, all you get is this message….

“The Comment Cannot Be Found. Please Return to the Previous Page and Try Again.”

Fortunately, there are many in the alternative media that copied this entire letter from the CFTC website.

The following is a copy of the original letter that the anonymous whistleblower from JP Morgan submitted to the CFTC….

———-

Dear CFTC Staff,

Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.

I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.

On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.

There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke’s speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.

As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.

It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America’s best kept secrets. Please do not allow this to turn into another Enron.

Kind Regards,
-The 1st Whistleblower of Many

———-

Another Enron?

If what this letter says is true, then the problems facing our financial system are more serious than most of us thought.

And the allegations of corruption at JP Morgan are absolutely shocking.

But this is not the first whistleblower to come forward to the CFTC with charges of rampant market manipulation by JP Morgan.

Back in 2010 I wrote about the stunning allegations that a former silver trader named Andrew Maguire presented to the CFTC.  The following is an extended excerpt from that article….

———-

Back in November 2009, Andrew Maguire, a former Goldman Sachs silver trader in Goldman’s London office, contacted the CFTC’s Enforcement Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.

Maguire told the CFTC how silver traders at JPMorgan Chase openly bragged about their exploits – including how they sent a signal to the market in advance so that other traders could make a profit during price suppression episodes.

Traders would recognize these signals and would make money shorting precious metals alongside JPMorgan Chase.  Maguire explained to the CFTC how there would routinely be market manipulations at the time of option expiries, during non-farm payroll data releases, during commodities exchange contract rollovers, as well as at other times if it was deemed necessary.

On February 3rd, Maguire gave the CFTC a two day warning of a market manipulation event by email to Eliud Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.

Maguire warned Ramirez that the price of precious metals would be suppressed upon the release of non-farm payroll data on February 5th.  As the manipulation of the precious metals markets was unfolding on February 5th, Maguire sent additional emails to Ramirez explaining exactly what was going on.

And it wasn’t just that Maguire predicted that the price would be forced down.  It was the level of precision that he was able to communicate to the CFTC that was the most stunning.  He warned the CFTC that the price of silver was to be taken down regardless of what happened to the employment numbers and that the price of silver would end up below $15 per ounce. Over the next couple of days, the price of silver was indeed taken down from $16.17 per ounce down to a low of $14.62 per ounce.

Because of Maguire’s warning, the CFTC was able to watch a crime unfold, right in front of their eyes, in real time.

So what did the CFTC do about it?

Nothing.

Absolutely nothing.

———-

You can read the rest of that article right here.

So will the CFTC do anything about all of this?

Based on past history, probably not.

Basically, the CFTC is a government agency that appears to do next to nothing.

Another scandal involving JP Morgan has come out in recent days as well.

This one involves their credit card division.  If you have a moments, you should really read the recent American Banker expose of credit card debt collection practices at JPMorgan Chase.  It exposes some things that will absolutely blow your mind.

Linda Almonte, a former executive at JPMorgan Chase’s Credit Card Litigation Support Group, has revealed some incredible stuff regarding the debt collection practices at the company.  Almonte says that she was shocked at what she saw when she began examining the details of a $200 million package of debt collection judgments to an outside debt collection agency….

Nearly half of the files her team sampled were missing proofs of judgment or other essential information, she wrote to colleagues. Even more worrisome, she alleged in her wrongful-termination suit, nearly a quarter of the files misstated how much the borrower owed.

In the “vast majority” of those instances, the actual debt was “lower that what Chase was representing,” her suit stated.

Almonte says that she warned that this sale of debt collection judgments must be stopped, but that a company executive told her that “she had better go along with the plan to sell the misrepresented asset“.

Almonte refused to go along, and she was fired on November 30th, 2009.

The more we dig into these giant financial companies the more corruption we find.

It really is shocking.

And remember, JPMorgan Chase is also the company that makes more moneywhenever the number of Americans on food stamps goes up.

JPMorgan Chase issues food stamp debit cards in 26 U.S. states and the District of Columbia, and they actually want more Americans to go on food stamps so that they can make bigger profits from the division that issues them.

So now are you starting to understand why so many Americans are upset about the corruption on Wall Street?

This isn’t a “conservative issue” or a “liberal issue” – it is an American issue and the outrageous behavior of these firms has brought our financial system once again to the edge of disaster.

Over the past six months, more than 350 prominent executives have resigned from major banks and financial institutions all over the globe.

Is this a sign that the rats are fleeing a sinking ship?

Do they know something that we don’t?

What we do know is that the financial crisis in Greece is far from over and the European financial system is getting closer to a complete meltdown with each passing day.

Very few of the things that caused the financial crisis of 2008 were ever corrected and our financial system is even more vulnerable today than it was back then.

In the end, this entire pyramid of debt, leverage and corruption is going to come crashing down really hard, and the consequences are going to be absolutely catastrophic.

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