The NYTimes Dealbook reports tonight that the Federal Energy Regulatory Commission (FERC) intends to take action against JP Morgan and Blythe Masters over manipulative trading schemes in the Michigan and California energy markets.
FERC’s 70 page filing reportedly singles out JPM Head of Commodities Blythe Masters for her role in the scheme, and alleges that Blythe personally participated in JPMorgan’s efforts to block the state authorities from understanding the reasons behind JPMorgan’s bidding schemes, and that Blythe made scores of false and misleading statements and material omissions to authorities and that enforcement officials plan to recommend Masters be held “individually liable.”
Surely Blythe will quickly be exonerated for the fact that JPM’s alleged energy market manipulation was not a directional position, but was merely hedging on behalf of a client… Click here for more:
had the opportunity yesterday to connect with lead counsel of the Silver Class Action Complaint, Christopher Lovell, partner of New York City law firm, Lovell Stewart Halebian Jacobson LLP. It was a fascinating interview, as Chris and his firm have won many of the largest settlements in commodity exchange act & antitrust law history, with their highest recovery being over $1.02 billion dollars.
During the interview Chris provided an update on the silver class action complaint, as well as announcing akey missing ingredient, one which may be needed for the survival of the class action silver manipulation case.
Bottom Line: The silver manipulation case is on the edge of being thrown out for good.After investing many hundreds of thousands of dollars into this case so far, Chris is humbly asking for help from the market. It appears that insider emails or a ‘canary’ may be the missing ingredient needed to keep the case alive.
According to Bloomberg, the vast majority of the Big Five banks’ profits consisted of a taxpayer subsidy — the Too Big To Fail guarantee. If the Too Big To Fail banks had to lend at the rates offered to their non-Too Big to Fail competitors, their profits would be severely shrunk (in some cases, to a net loss):
A reader has submitted evidence that Bloomberg falsified a gold price chart on air in January 2012 in order to discourage investment in the metal.
During an on-air segment touting gold’s extreme volatility, Bloomberg posted a monthly chart of gold depicting the price action of July 2011-Jan 2012. In order to paint the perspective that gold is an extremely volatile asset and an unworthy wealth preservation vehicle, the monthly reference points were scrubbed, and replaced with the years 2001-2011. The chart displayed also altered the $ value of gold axis (unless we missed something, gold did not dip below $500/ounce in 2010, or in December of 2012).
Hey Doc, I just wanted to share a few thoughts with you, to see if you’ve felt the same things I’ve been feeling. I guess it’s brought about by the dual Federal Judge dropping the JPM lawsuit (expected, but not one bit less tragic and disappointing despite, is this what Chilton had been waiting on, before declaring the same thing?)…and the fact that despite GATA, Bill Murphy’s promises of CFTC litigation, Turd’s promises of “hot, explosive, historic” action”, Sprott’s removal of another 17 MILLION oz within 4 months, QE3, and QE4….. Here we languish at $30. No matter how astronomically wonderful the fundos AND the technical chart look…..all JPM has to do (and do it they have) is pour on another 100 or 200 million ounces of shorts. That’s all it takes to apparently stop silver prices for the entire world… Click here for more & The Doc’s response:
Federal US District Court Judge Robert P. Patterson Jr. has dismissed the class-action litigation suit brought against JP Morgan (and originally HSBC) regarding silver market-rigging.Judge Patterson cited lack of specifics and claims of bad intent necessary to bring the suit to trial.
Perhaps Judge Patterson never bothered to actually read the litigation, because if he did, (assuming he was not paid off) he would have come to the same conclusions we did when the suit was filed in September of 2011: The lawsuit completely exposes JPMorgan’s silver manipulation from insiders’ perspectives for ALL TO SEE. We’re talking your wife streaking on the field during the opening kick-off of the Super Bowl type of exposure.
The Doc sat down with Harvey Organ again for the 2nd of several interviews regarding the recent massive cartel intervention in the gold and silver markets post the QE4 announcement, the fiscal cliff, the CFTC’s silver probe, and the unprecedented 20 million oz of silver still standing for December delivery.
Harvey stated that recent evidence seems to validate his long held suspicions that China is behind the big gold & silver shorts, and stated that the nation is draining massive amounts of physical metal East. Harvey also made the shocking allegation that COMEX is settling allocated delivery & storage requests with paper metal, and stated that he no longer has any faith whatsoever in the numbers reported in the COMEX gold and silver inventories.
Recently, I have received a good number of emails containing conversations between readers and CFTC Commissioner Bart Chilton about the allegations of a silver price manipulation because of the large concentrated COMEX short position held by JPMorgan. Chilton had previously led the move to begin the current silver investigation in September 2008 and has always been quick to respond to those writing to him, a rarity for high officials. I couldn’t help but notice that Commissioner Chilton had recently begun to say things that seemed to try to explain away the allegations of a silver manipulation, much different from his former stance of promising to look into it. I found this change disturbing and it has influenced my thinking that the CFTC would never do anything about the silver manipulation. One particular response from Chilton to a reader prompted me to write to the Commissioner myself (aside from sending him all my articles) -
In simple terms, Commissioner Chilton’s response to the reader confirms my worst fear – the reason the CFTC hasn’t moved against the silver manipulation is that they don’t understand it. Even though the agency publishes remarkably detailed and accurate data on concentration in their weekly COT reports, they apparently don’t comprehend what it is they are publishing. As a big believer in the premise that recognition of a problem is 50% of the ultimate solution; I also believe that if a problem is not recognized, it is unlikely to be remedied. I’ve always considered Chilton to be one of the “good guys” at the Commission, so it is quite disheartening to see him so misinterpret his own agency’s data.
This is no small matter. The CFTC’s main mission is to guard against price manipulation, the most serious market crime possible.
Berlusconi to return to Italian politics. Mario Monti to quit (and return to Goldman Sachs for a annual honorarium of $50,000,000). The Italian 10-year bond to go to 600 basis points over bunds. Investors to notice that Italy is still in the position of having massive debts and a completely stagnant economy. Panic to break out (again).
The bursting of the bubble
London property has been wearing anti-gravity boots for years now. Hey, the market has become so frothy that know-nothing footballers have been turning themselves into property developers (a sell signal if ever there was one.) But those anti-gravity boots are starting to lose their potency. Stand by for a massive fall in London prices. Property elsewhere in the UK will have a sympathy fall too. Continue reading →