http://www.tfmetalsreport.com/blog/4077/disinformation-deceit
Disinformation & Deceit
Things are getting curiouser and curiouser...
By now, I would imagine that nearly everyone has seen this: (http://www.zerohedge.com/news/libor-may-be-manipulated-silver-not-cftc-conclude). I was sitting here in the TurdCave yesterday afternoon when I saw the original FT story cross the wires. Note the time stamp was exactly 5:00 pm EDT (NY time). Hmmmm. Isn't that interesting? On the next link, you can see that pre-open, electronic trading begins at exactly 5:00 pm NY time, as well. (http://www.cmegroup.com/trading_hours/). Again, hmmmm. I'm sure that's just a coincidence.
Then, when ZH picked up the story, word quickly spread. What was going on here? Who are the "three sources" who divulged this information? Well, our friend The Doc got right on it and quickly found out that it wasn't Bart Chilton (http://www.silverdoctors.com/bart-chilton-ft-report-that-cftc-to-drop-silver-investigation-is-inaccurate-premature-there-have-been-devious-efforts-to-move-price-of-silver/) and several other, industrious Turdites reported receiving similar responses to their inquiries.
So, what are we to make of all this? It would seem that we are left with these possibilities:
- The story is true and accurate and the CFTC silver investigation will soon close with nothing done.
- The story is inaccurate and is simply shoddy reporting by the crew at the Financial Times.
- The story is inaccurate and was deliberately placed in order to influence a certain outcome. Rationale for this ranges from: a) An attempt to initiate another Sunday Night Massacre, b) An attempt to draw in additional SpecShortSheep in advance of lower margins today, c) An attempt to influence the CFTC to conclude the investigation ahead of "schedule" in September, d) An attempt to influence the civil court into dismissing the class action suits against JPM, e) anything else you can think of.
I look forward to reading what everyone thinks and am open to other ideas/theories.
So far, the report has had little impact on price as both metals are currently UP basis the close on Friday. Imagine that!...Gold UP on two, consecutive days. That must be some kind of record. Regardless, the charts are looking increasingly positive and strongly suggest that The Bottoms are in and that a breakout beginning of a new trend is imminent. Be right, sit tight and you will be rewarded.
and from Harvey's blogspot......
http://harveyorgan.blogspot.com/2012/08/faulty-london-financial-times-story-on.html
I think Jessie has got it right:
(courtesy Jessie/Americancafe.com)
(courtesy Jessie/Americancafe.com)
CFTC SAID TO "DROP" FOUR YEAR INVESTIGATION INTO SILVER JUST BEFORE PROMISED RELEASE
CFTC TO INVESTING PUBLIC: 'DROP DEAD.'
This leak to the FT *could* just be a 'trial balloon' by Mr. Gensler and
his crew to see if they can get away with it. But that seems more like
the plot of a novel.
This could be one of the best examples of the credibility trap in
action. The government regulators can say nothing because of their
government's long complicity.
If the CFTC in fact does
'drop' the investigation
without presenting
findings, one could
consider that a slap in
the face of the American
public which on the
whole asked for the
investigation to be done
in the first place, by the
regulators who
purportedly are hired and paid to serve their interests.
Given the recent admissions about widespread manipulation in LIBOR,
the timing of this outcome to the CFTC invesigation could hardly be
more arrogant and high-handed, and designed to put the investing
public in their places. It will certainly not inspire any confidence in
the integrity of the markets and their regulation.
It would probably be unwise for the investing public to accept this
outcome without presenting some consequences.
I suggest that a mass cancelling of futures trading accounts and the
withdrawal of all funds deposited there might be a step in the right
direction.
Given the serial criminality that has been exhibited in the US futures
markets, that action might be long overdue on the basis of common
sense.
http://www.silverdoctors.com/bart-chilton-ft-report-that-cftc-to-drop-silver-investigation-is-inaccurate-premature-there-have-been-devious-efforts-to-move-price-of-silver/#more-11082
Bart Chilton: FT Report That CFTC to Drop Silver Investigation is ‘Inaccurate & Premature’, ‘There Have Been Devious Efforts to Move Price of Silver’
*BREAKING*
When we first learned Sunday night that the FT was reporting that the CFTC was dropping their 4 year silver investigation, The Doc contacted CFTC Commissioner Bart Chilton for his take and role in the decision.
Just like Usain Bolt at the 2011 World Championships, it appears that the FT has jumped the gun.
Commissioner Chilton has informed us that ‘The Financial Times report related to silver is not only premature, but inaccurate in several respects‘.
As to whether Chilton believes the silver market has been manipulated the Commissioner informed us:
‘I continue to believe, consistent with my previous statements to which you referred, and based upon information from the public, that there have been devious efforts related to moving the price of silver. Incidentally, I also believe there have been silver and gold market anomalies outside of the silver investigate window that have raised, and continue to raise, market concerns.‘
The Doc’s full correspondence with Commissioner Chilton is included below:
Commissioner Chilton,
As I’m sure you are aware, the FT tonight reported that the CFTC will be dropping its 4 year investigation into silver market manipulation, ‘after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation.’
In 2010 you made a public statement regarding the silver market that ‘there had been “fraudulent efforts” to “deviously control” the silver price.
I am wondering whether you agree with the decision to drop the investigation due to lack of sufficient evidence or whether your opinion was overruled by Commissioner Gensler and the rest of the Commissioners.
Once the CFTC officially confirms that the investigation has been dropped, we would love to have the opportunity to speak with you regarding your thoughts on the conclusions of the 4 year investigation as you mentioned previously.
The Doc,
SilverDoctors.com
Commissioner Chilton responded:
‘There has been no such decision. I’ve been on the blower with some reporters saying what I can about the inaccuracies. Hopefully there will be a story or two that contains some of this.
In general, what I’ve said is this:
The Financial Times report related to silver is not only premature, but inaccurate in several respects.
Whenever the CFTC does take an action or actions related to our silver investigation, I am hopeful that we will do so in a fulsome and transparent manner. That will certainly be my desire in anything we do.
I continue to believe, consistent with my previous statements to which you referred, and based upon information from the public, that there have been devious efforts related to moving the price of silver. Incidentally, I also believe there have been silver and gold market anomalies outside of the silver investigate window that have raised, and continue to raise, market concerns.
http://www.zerohedge.com/news/libor-may-be-manipulated-silver-not-cftc-conclude
Libor May Be Manipulated, But Silver Is Not, CFTC To Conclude
- Blythe Masters
- CDS
- Commodity Futures Trading Commission
- fixed
- LIBOR
- MF Global
- Newspaper
- Precious Metals
In what may be the most amusing news of the day, according to the FT the CFTC will shortly drop its 4 year old investigation into silver manipulation, "after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation." How about evidence to support an "illegal" case? Of course, that this is happening after the recent discovery that the world's most pervasive fixed income benchmark was manipulated for years, if not decades, can only be reason for laughter and wonder if the CFTC used the same assiduous diligence methods in pursuing the alleged perpetrators of precious metal manipulation as it did in letting the fraud at PFG slip through its fingers for two decades. We will probably never know, or at least not until an email mentioning bottles of Bollinger and silver price "fixing", (or "banging the close" for that matter) in the same sentence inexplicably turns up and makes a complete mockery of the CFTC yet again.
The Commodity Futures Trading Commission first announced that it was investigating “complaints of misconduct in the silver market” in September 2008, following a barrage of allegations of manipulation from a group of precious metals investors.
In 2010, Bart Chilton, a CFTC commissioner, said that he believed there had been “fraudulent efforts” to “deviously control” the silver price.But after taking advice from two external consultancies, the first of which found irregularities on certain trading dates that it believed deserved more analysis, CFTC staff do not have sufficient evidence to bring a case, according to the people familiar with the situation.The CFTC has analysed over 100,000 documents and interviewed dozens of witnesses since it began investigating the market in 2008, it said last year. The people familiar with the situation said the evidence included records from JPMorgan.The conclusion of the investigation will come as a relief to JPMorgan. Although no company or individual was named in the CFTC investigation, the Wall Street bank has suffered a torrent of allegations from silver investors on the blogosphere.
The FT continues by referencing the inventor of CDS herself: Blythe Masters:
Blythe Masters, head of commodities at JPMorgan, in an April interview with CNBC conceded that there had been “a tremendous amount of speculation, particularly in the blogosphere, about this topic”, but maintained that the bank had no large bets on silver prices.“We have no stake in whether prices rise or decline,” she said. JPMorgan declined to comment on the CFTC investigation.
What the FT did not mention is the end of that sentence pronounced in an interview on April 5 with CNBC which goes as follows:
"We have offsetting positions. We have no stake in whether prices rise or decline. Rather we're running a flat or relatively flat matched book.
Of course, the fact that a month later the firm's entire internal $350 billion hedge fund was found to be not only engaging in non-matched book trading, but suffered a humiliating $6 billion loss due to unmatched prop positions, should not influence all those who persist in perpetuating gross lies.Which of course is why Masters' next sentence was the following:"What is commonly out there is that JPMorgan is manipulating the metals market. It's not part of our business model. it would be wrong and we don't do it."Courtesy of Gary Gensler's CFTC, who recently has managed to build up lots of goodwill courtesy of his masterful handling of both MF Global as well as PFG, we will never know whether she was also lying about this as well.Finally, and tangentially, in the Libor scandal where not even the regulators can mask up years of gross manipulation, we learn that UBS fired dozens of people embroiled in the still evolving Lieborgate scandal, prosecution immunity notwithstanding:UBS AG (UBSN) has dismissed about two dozen traders and managers in connection with an investigation of manipulation of the London interbank offered rates, Der Sonntag reported.
The Swiss bank terminated the traders for possible involvement in a fraudulent ring across several banks and the managers for not exercising controls or for boycotting an internal investigation, the newspaper reported today, citing an unidentified person familiar with the proceedings. Dominique Gerster, a spokesman at UBS, declined to comment on the report.
So let's get this straight: bankers, for their own selfish and financial reasons formed cabals and manipulated, with the complicity of central bankers, a market worth $500 trillion notional. But they left the one market which has the embedded systemic risk of impairing the perception of fiat, and the viability of the status quo system, untouched? And this despite JPM's implicit admission of guilt when it reduced it massive silver short position back in December 2010.
One could almost make this up.
and.....
http://maxkeiser.com/
FT: US drops probe into silver price manipulation
Stacy Summary: via @Peterhuwfarmer – the front page of the Financial Times tomorrow:
http://www.ft.com/intl/cms/s/0/45329d42-dd97-11e1-8be2-00144feab49a.html?ftcamp=published_links%2Frss%2Fhome_uk%2Ffeed%2F%2Fproduct#axzz22i90Ibnk
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