Cracks Spread in The Bullion Banks’ Price Management System
The comments below are an edited and abridged synopsis of an article by Clint Siegner
Department of Justice prosecutors charged a sixth JPMorgan executive, Jeffrey Ruffo, for cheating in the precious metals markets.
The indictment outlines nearly a decade spent coordinating with other traders in JPMorgan’s precious metals department to rig prices. This includes thousands of fraudulent trades placed for two purposes: benefiting JPMorgan clients at the expense of others, and benefiting JPMorgan and its traders directly by cheating their own clients.
More indictments, including charges against traders at other bullion banks, may be on the way. The prospect of prison time may be giving pause to any crooked bankers still working in the gold and silver markets. This should be an eye opener for bullion bank clients and speculators still gambling in the COMEX.
As long as investors rely upon the COMEX and other exchanges for price discovery, it is the job of federal regulators to do something to curb the rampant cheating. Unfortunately, the CFTC is incompetent.
The CFTC has taken no responsibility for its failed 5-year investigation of price manipulation in the silver market. Agency officials somehow managed to overlook the massive pile of evidence that DOJ investigators have rounded up.
They have taken almost no action despite the DOJ indictments and guilty pleas. JPMorgan is still active in the markets even though its bullion trading desk seems to operate like a criminal enterprise.
CFTC officials are in a quandary similar to those who constantly dismiss allegations of price manipulation as mere conspiracy theory. It is getting harder for them to ignore the facts.
Congressman Alex Mooney from West Virginia is asking Attorney General Bill Barr to look at the price rigging that continues largely unchecked by the CFTC. Price spoofing may be the tip of the iceberg in terms of criminal activity.
The Congressmen previously sent letters to the CFTC with pointed questions about some of the questionable activity in the futures markets, but have yet to get a response.
All this begs the question about what the CFTC might do if dozens of bankers at multiple banks are ultimately convicted. Will officials there still be able to protect their crooked friends on Wall Street?