Will DOJ Finally Hold Bullion Banks Accountable for Gold and Silver Market Rigging / Commodities / Gold and Silver 2018
ClintSiegner : Itis hard to cheer for the Department of Justice these days, but federalprosecutions have begun to offer hope for precious metals investors hurt byrigged markets and crooked traders.
TheDOJ looks poised to do what regulators at the CFTC have not. They will useevidence of blatant cheating and fraud to hold a few bankers accountable.
Lastweek, DOJ officials asked the judge in a civil suit against JPMorgan Chase todelay proceedings for 6 months to clear the path for more prosecutions.
Plaintiffsin that civil action have accused JPMorgan of ripping off investors based inpart on evidence turned over by Deutsche Bank in 2016.
DeutscheBank paid millions of dollars in fines and provided hundreds of thousands ofdocuments plus dozens of voice recordings to settle its portion of the ongoinglawsuit.
JusticeDepartment investigators, who may be using the same trove of information, wouldlike to see a pause in the civil proceedings to “protect the integrity” oftheir ongoing criminal investigation.
TraderHas Turned State’s Evidence against JPMorgan, Others
DOJ'srequest follows a key conviction last month. John Edmonds, a former JPMorganmetals trader, pleaded guilty to spoofing the metals markets and admitted hehad done so with full awareness and support of his managers.
Edmonds,like Deutsche Bank, has agreed to cooperate and provide evidence implicatinghis superiors and other traders, both inside his bank and elsewhere.
Edmondsadmitted to spoofing markets hundreds of times over 6 years, confirming whatmany gold and silver bugs have long known.
The precious metals markets are illegallymanipulated by the bullion banks as a matter of routine and they have beendoing it for a very long time.
Yes,the debate over whether or not there is price rigging in the metals markets iseffectively over.
Nowthe debate over whether these rigged markets can be cleaned up begins. Edmondswill be sentenced for his crimes on Dec. 19th. The DOJ’s request for a 6-monthdelay of the civil suit implies that the agency expects to make real progressbetween now and the middle of next year.
Ifthe Justice Department can uncover even more evidence of fraud, charge multiplepeople with crimes, and implicate several other banks, it will be a tremendousboost to the case.
CFTCContinues to Turn a Blind Eye
Unfortunately,despite progress elsewhere, the captured CFTC has yet to acknowledge thecomplete failure of its own 5-year investigation of the crooked silver market.While they “searched” in futility for wrong-doing, Edmonds and an unknownnumber of other bank traders cheated incessantly.
Asof this writing, there is no indication the CFTC plans to take action of anysort – they apparently don’t find the guilty pleas and mountains of evidencecompelling enough to reopen their own investigation.
It’stoo bad because regulators could do a lot to restore confidence in the marketsby restricting the banks’ ability to trade – something the DOJ cannot do.
Thebanks are still getting their money’s worth for capturing the CFTC and otherregulatory bodies. Bank executives may wish they had invested more in cozyingup with the FBI and federal prosecutors.
Nowit appears criminal and civil juries will get their chance to evaluate what thebullion banks have been doing. Those citizens may not be as tolerant as thebureaucrats at the CFTC.
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.
© 2018 Clint Siegner - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.