Cracks Spread in the Precious Metals Bullion Banks' Price Management System / Commodities / Gold & Silver 2019
Department of Justice prosecutors charged a sixth JPMorganexecutive for cheating in the precious metals markets.
Jeffrey Ruffo stands accused of racketeering andspoofing metals prices from 2008 - 2016, along with other crimes includingconspiracy to commit wire fraud.
The indictment outlines nearly a decade spent coordinating withother traders in JPMorgan’s precious metals department to rig prices. Theactivity includes thousands of fraudulent trades placed for two purposes.
The first was to benefit favored JPMorgan clients at the expenseof other investors.
The second was to benefit JPMorgan and the traders directly bycheating their own clients.
The investigation is ongoing, and more indictments, includingcharges against traders at other bullion banks, may be on the way. It appearsthat at least some of the executives now facing prison time have decided tocooperate and provide evidence against others involved.
The DOJ prosecutions are certainly a step in the rightdirection. It is getting harder for even the staunchest defenders of futurestrading to dismiss price manipulation as a mere conspiracy theory.
The genuine prospect of prison time may be giving pause to anycrooked bankers still working in the goldand silver markets. And, the story should be an eye opener for bullion bankclients and speculators still gambling in the rigged casino also known as theCOMEX.
For those who have been watching this story, it is hard tofathom why anyone is still expecting fair treatment in the futures markets. Itis clear, however, that plenty of confidence remains. Gold open interest madenew all-time highs last week.
As long asinvestors rely upon the COMEX and other exchanges for price discovery, it isthe job of federal regulators to do something to curb the rampant cheating.Unfortunately, the Commodity Futures Trading Commission, the primary regulatorfor futuresmarkets, is still captured and/or incompetent.
The CFTC has taken no responsibility for its failed 5-yearinvestigation of price manipulation in the silver market. Agency officialssomehow managed to overlook the massive pile of evidence that DOJ investigatorshave rounded up.
They have taken almost no action despite the DOJ indictments andguilty pleas. JPMorgan is still active in the markets even though its bulliontrading desk seems to operate like a criminal enterprise.
CFTC officials are in a quandary similarto those who constantly dismiss allegations of price manipulation as mereconspiracy theory.
It is getting harder and harder for them to ignore the facts.
Congressman Alex Mooney from West Virginiais asking Attorney General Bill Barr to have a look at the pricerigging which continues largely unchecked by the CFTC. Price spoofing may justbe the tip of the iceberg in terms of criminal activity.
The Congressmen previously sent letters to the CFTCwith pointed questions about some of the questionable activity in the futuresmarkets, but has yet to get a response.
All this begs the question about what the CFTC might do ifdozens of bankers at multiple banks are ultimately convicted. Will officialsthere still be able to sit on their hands and protect their crooked friends onWall Street from enforcement?
By Clint Siegner
Clint Siegner is a Director at MoneyMetals Exchange,perhaps the nation's fastest-growing dealer of low-premium precious metalscoins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon,puts his experience in business management along with his passion for personalliberty, limited government, and honest money into the development of MoneyMetals' brand and reach. This includes writing extensively on the bullionmarkets and their intersection with policy and world affairs.
© 2019 Clint Siegner - All Rights Reserved
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