Fighting Back

If you're depressed and despondent over the price action in the metals, don't be. It's all simple, option expiry nonsense and it will get better next week. Besides, I have some happy news for you today...The Good Guys are fighting back.

You'll recall that late last year, the U.S. District Court in New York dismissed the civil suit for silver manipulation against JPMorgan. At the time, The Court granted the plaintiffs 30 days to re-file. Today, I'm happy to share with you that they, in fact, have re-filed and are quite optimistic about their case going forward.

First up, here's a link to the summary written by Turdville Attorney General CALawyer in the days immediately following the dismissal. You might want to review this again before going forward. http://www.tfmetalsreport.com/blog/4408/guest-post-summary-silver-civil-suit-dismissal-calawyer

Upon receipt of the filing yesterday, I once again sent it off to CALawyer for his opinion. Time was short so he was only able to reply with the email below. We are all in his debt for taking the time to review it. Again, CALawyer, THANK YOU!

Hey Turd:
This is my quick take.  I read the Motion for Leave to Replead.  It is very standard, and should be granted.  Routine pleading, nice summary.  The defense will oppose, claiming that even with all the new proposed facts, the new facts do not make a difference and thus, the Motion for Leave to Replead should be denied.  It is a very low hurdle for Plaintiffs, and the Motion is almost certain to be granted, based on the new facts from the Proposed Second Amended Complaint.  My read of the proposed new complaint is that this should be enough to make out a case.  That may or may not be enough to get discovery launched, but the absolute last thing the defense wants is an army of Plaintiff attorney's scouring through the JPM documents.  No TBTF bank wants that, ever.  I hope, but I do not know, that the court will grant discovery on this based on the showing of alleged facts from the new complaint, though.

For example, look at this new allegation, at paragraph 137.  I like this quote a lot:
"e. As a sophisticated and large market participant as well as a
market maker on the London market and clearing member of COMEX, JP Morgan
well knew each of the foregoing facts as they occurred. By selling in the small
COMEX market, JP Morgan knew that it received lesser sale prices because it had a greater depressant effects on prices. Thus, JP Morgan repeatedly and
uneconomically incurred additional transaction costs in order to sell at the lower
prices it caused on COMEX. JP Morgan thereby intentionally acted contrary to the
conduct of a hedger by repeatedly incurring greater transaction costs. It did so in
order to depress prices."

This allegation is tight, and makes out a compelling case, because it finally shows that JPM's behavior is illogical and hence, that leaves only the conclusion that it was manipulating prices.  The distinction between the Comex and LBMA as far as price, volume, etc., is critical.  Rhetorically, then, the obvious question that is asked, "Why would JPM hold a large short position on Comex to hedge when hedging on Comex cost more than on LBMA?, is then answered: "Because it wanted to manipulate prices despite the costs to do so because it made money from depressing prices, which ultimately means it was not hedging at all, since JPM would not hold a hedge that lost it money when it could hold the same hedge on LBMA without losing money."

I like the substantial allegations at paragraph 137 a lot.  This could get real interesting if discovery is allowed. 
That decision is the next real test, not the next motion to dismiss.  
Thanks for letting me weigh in.
Anytime you need something my friend, just ask.

Sincerely,

CALawyer, Esq. Attorney General de Turdville

OK, with that, the documents to review are below. The have been filed with the court and are fully public. At this point, we'll need to let the process run its course so no need to get carried away today. However, I felt that it was important for you to know that The Good Guys are continuing the fight on your behalf. Wish them well and Godspeed.

TF

FINAL - BRIEF of JPM CIVIL SUIT RE-FILE by Turd Ferguson

Second Amended Complaint in JPM Silver Manipulation Civil Case by Turd Ferguson

505 Comments

tobydaniel's picture

@CA Lawyer

Regardless of my opinion on the manipulation, I think you did a great job and wish you the best.

silver66's picture

Bought and paid for

http://freebeacon.com/corporate-cash-financing-obama-501c4/

Politicians should wear nascar type jackets, so we know who owns them

Silver66

Charles S. Hamlin's picture

@Cleburne61

Give me a break...I did a Google search and found it in 10 seconds...

silver66's picture

LCS-- boots on ground

Just got call from local coin shop, he had significant maples,krugarands and philharmonics come in on Monday. He had called me Monday to ask my interest, I had answered i was very.. Work has kept me out of town and away from him for a few days. He just wanted to let me know that all that he had was snapped up and he was sorry, but that he was getting a lot of silver in next week from a investor and he would hold some for me if I was interested.

People sell for many reasons, but it appears that there is strong demand for physical

Silver66

P.S. anyone know where to find a good goalie, let me know and I will forward to Leafs management. AARRGGHH, this year will be different(I hope)

Mickey's picture

COT report should be pretty meaningless

given the action since Wednesday

meddle magic's picture

this beatdown

Has got my confidence shaken, I see the 10 year is off so time to sell TBT calls next crash the SM to rally the bonds. I don't see a way out of this just more of the same sell every rally in the pM's, bonds etc. This may be a good indicator that the PM's will rally cause I feel like warmed over shit. At least the oil's HAL RDC WFT and IO look good.

Mickey's picture

Given the OI on puts at 1660

I have to think we see gold move up to the 1662 levels and hang there till comex close monday, no?

while there are a ton of calls at 1700, the strikes below are not too shabby either including 1665. So the sweet spot IMO is 1662ish. 1665 could be breached with no terrible consequence for the short call writers. But if breached by a buck or two its no big deal either.

maybe meaning all the BS is done--just some tweaking  up Monday.

So we may start to see some buying in the next hour if it does not move prices too much.

If not, do your buying Monday before you head out to lunch

¤'s picture

CAL

Thanks for your sincere and tireless efforts to help everyone here on TFMR in many ways time after time. yes

Hagarth's picture

Mickey inbox

*

Groaner's picture

Depressed??? who me???

In fact I'm not even Groaning, but I am wine,ing...

I cant remember silver being hammered like this never coming up for air.. and there are not options expirations on that this month either, or are there?

Revelation's picture

The End of Money

http://rense.com/general85/endofmoney.htm

They will further justify albeit highly erroneously, the move towards a universal electronic money system by fraudulently claiming that it will stop money laundering and other criminal activities. And that when the new money goes `online` and all other currency is declared worthless, then the relevant tax authorities will be able to scrutinise who has been hiding money and using it for criminal purposes. The criminals will be unmasked they will claim.
 
This `Control Zone Utopia` is what the power hungry self styled lords of money envision for mankind. As mentioned above, this development will give the `Hidden Masters` untold control over people's lives, their very existence even, and the incentives to be a good `citizen` will be sharply increased. Nobody will want their ID card refused, or Chip switched off. And how many of those begging to be saved from their economic misery when accepting the `new money` will stop and realize that with it's introduction, their new lords and masters will have gained complete and utter control over their lives, exactly as prophesied in the Bible during the `Last Days`
 
Today 01/25/2013
 
tyberious's picture

@SRS

Peak Oil Bites the Dust

thedailybell.com / By Staff Report / January 25, 2013

$ 20 trillion shale oil find surrounding Coober Pedy ‘can fuel Australia’ … Coober Pedy has between 3.5 billion and 233 billion barrels of oil could change Australia from oil importer to exporter … South Australia is sitting on oil potentially worth more than $ 20 trillion, independent reports claim – enough to turn Australia into a self-sufficient fuel producer. Brisbane company Linc Energy yesterday released two reports, based on drilling and seismic exploration, estimating the amount of oil in the as yet untapped Arckaringa Basin surrounding Coober Pedy ranging from 3.5 billion to 233 billion barrels of oil. At the higher end, this would be “several times bigger than all of the oil in Australia,” Linc managing director Peter Bond said. This has the potential to turn Australia from an oil importer to an oil exporter.  -  Advertiser

Dominant Social Theme: We are running out of oil and fracking is just a ruse to keep us believing in a consumer society for a while longer.

Free-Market Analysis: For years, so many years, we’ve launched article after article pointing out the insanity of beliefs in elite “scarcity memes . ”

And Peak Oil has been one of the most stubborn and longest-lasting. We’ve Argued that the market itself (theInvisible Hand ) would find a way to generate energy – via more oil or with other energy sources – if oil was actually running out. But we did not really think WHAT oil running out. We Believed it was just another manipulation.

We’ve traced that manipulation many times. Just search for Peak Oil and Daily Bell. It’s laid out in detail, and to give credit where credit is due, we are not the only alternative to mainstream journos have made the case. There are plenty of others who’ve delved into the Peak Oil scam and exposed it.

Memes like peak oil and global warming are, in fact, propaganda … launched by a power elite that wants to control the world and needs to frighten people about the availability of basic resources in order to do it.

READ MORE

Sheetrocker's picture

@treefrog

Suppose this scenario has anything to do with our government buying all that ammo and trying to disarm the citizenry? I think the government of Honduras is looking for serious trouble by not paying their soldiers.

I am taking the liberty of reposting your link here.

http://www.wsbtv.com/ap/ap/top-news/honduras-cant-pay-its-bills-neglects-services/nT59d/

I think everyone should take a few minutes to read this article. Then try to imagine it happening here.

Matt L. DeTectre's picture

Silver Manipulation Lawsuit

JPM et al most likely involved in metal price management and other market interventions probably backstopped by the U.S. government.  There is the PPT (Plunge Protection Team) and other entities like the U.S. Treasury's Exchange Stabilization Fund (ESF) authorized by law to intervene in markets and most likely use the TBTF banks to do their bidding.  If lawsuit can't be dismissed any other way it may boil down to some kind of immunity or national security issue.  Nonetheless, good luck to the plaintiffs.

meddle magic's picture

1984

George Orwell was on target. Reminds me of a bathroom wall wisdom I read from years ago

' life is like a shit sandwich the more bread you have the less shit you have to eat'. Matter of fact i think it was in 1984 when I read it.

Urban Roman's picture

Peak Oil

tyberious, 

Peak Oil did not bite the dust, it is now a historical fact receding in the rear-view mirror. It will come into clearer focus in another few years. There is no reason to believe Australia's shale oil is any different than US shale oil. Difficult to extract, and wells that play out much much more quickly than conventional. 

If there's any "theory" to it, it's like gravitation, for which the only theoretical work is filling in the fine details of its relationship with other fundamental forces. 

Texas Sandman's picture

JP Morgan

Being right is the easy part.  Sitting tight is hard.

So said Jesse Livermore.

Better days will come.  In the meantime, I made some today scalping from the long side around my fixed position in futures.

Past mid morning cummulative market delta was diverging against price, so going long(er) was a pretty easy call.

And I added some more ASEs to my Phyzz!

So, it's all good.

Keep the faith.

tyberious's picture

Peak Oil

No dog in that fight! Biotic oil, that is easily accessible has definitely peaked!

meddle magic's picture

COT out

Turd any comments welcome, looks pretty bad.

Texas Sandman's picture

Easy comment on the COT

Cut off date was early in the week before the EE started pounding it south.  Old info.

I'm not turdly, but even I can see that.

Urban Roman's picture

@CALawyer,

Wouldn't a discovery phase affect the financial industry pretty much the way a bowling ball would affect a house of cards?

treefrog's picture

urban roman

great bowling ball metaphor!

Texas Sandman's picture

Effect of discovery

Get very wide latitude for discovery in a civil suit, so my guess is if they have any skeletons lurking, it would be devastating to the morgue and probably the whole financial sector.  So I think you're right.

The wild card would be a state secrets defense invoked by treasury on the morgue's behalf.  But they probably won't want to do that either, because it would become very clear who the counterparty BM was talking about actually is.  It would probably stop the lawsuit cold though.

Nana's picture

Correction: RE CALawyer

I meant to say wonderful not wonder....sorry about that....

Note to Nana, proof read before you post.....

AlexCojones's picture

CALawyer - Drinks on Me, Whether Ya Be in Barstow or Bullhead

Hey Cal,

Thanks for the perusal. Would've taken me a day or three just to get to Paragraph 37. Should you ever be in the Bullhead City, AZ or Tempe AZ area, or in Laughlin NV, please PM me here and I'll treat you to a drink(s).  I especially like how you clarified things for those of us law-speak illiterates. 

Alex

For example, look at this new allegation, at paragraph 137.  I like this quote a lot:
"e. As a sophisticated and large market participant as well as a
market maker on the London market and clearing member of COMEX, JP Morgan
well knew each of the foregoing facts as they occurred. By selling in the small
COMEX market, JP Morgan knew that it received lesser sale prices because it had a greater depressant effects on prices. Thus, JP Morgan repeatedly and
uneconomically incurred additional transaction costs in order to sell at the lower
prices it caused on COMEX. JP Morgan thereby intentionally acted contrary to the
conduct of a hedger by repeatedly incurring greater transaction costs. It did so in
order to depress prices."

ancientmoney's picture

On another subject . . .

As the Sandy Hook shootings were the springboard to new gun control legislation, the DHS is predicting a cyber attack is imminent.  A cyber attack to use as a springboard to controls on the internet?  Yes, according to this article:

http://www.veteranstoday.com/2013/01/25/dhs-announcement-cyber-911-coming-soon/

Nigel Black's picture

Santa's latest

Defend Yourself By Not Giving In – Day 2

My Dear Friends,

Take this challenge a day at a time. The fundamentals of gold’s price and currency wars underwrite not only a recovery in the gold price, but a move to new highs from the base to be set soon. You have a weapon that has ultimate power to frustrate the price manipulation. All you need to do is to do nothing whatsoever which will confuse the shorts.

The manipulators that focus on moving price down and not selling volumes of gold to accomplish it wager on the fear mechanism of price decline to pressure you beyond your ability to reason logically. What the gold banks and short of gold share funds count on is that you will injure yourself just to stop the pain of loss.

Stay away from the well known chat sites that harbor paid-for bashers that say nearly insane things to scare the hell out of you. If the big boys cannot terrify you to the point of taking your position away from you, a firm bottom will come into play very soon.

Technicals are good, but simply stated, the manufactured downside pressure stops only when it does not work. Those pressuring gold and silver prices clearly are not long position sellers looking to change their positions into cash dollars. This is a solid fact based on the manner of their selling.

If you had 2 tonnes of gold and wanted to sell you would fire any broker that went into any market and yelled "20 tonnes for sale!" when the bid was for 100 ounces only. Take comfort knowing that the early am takedown and takedowns in late Asia time are not valid sellers, but painters of the price for their best interest. Nobody is so stupid as to announce they want to sell a major part of one year’s production of gold or silver when there is no market to absorb any reasonable part of it.

This is a wicked game being played by sociopaths to whom destruction gives both profit and great pleasure. If all the business matters in the shares of the business in gold into which you have invested are working out properly, simply stop quoting it for a few days. If your gold is fully paid for simply stop quoting it.

This is a nasty game taking place which relies entirely on scaring out of your wits. Yes, out of your mind, so you sell something of great value for peanuts to the exact party playing with your head via price. When you must look at the action, remember there is a buyer for every seller. That buyer is not scared out of his/her wits if you sell to stop the pain you are in.

Have my courage which I freely offer you by knowing that we are absolutely correct in markets made by devils that are bullies whose occupation is theft. Gold is the ultimate battle between good and evil. It is the ultimate battle between deficits and surpluses. Gold is the battle between paper currency backed by nothing and guaranteed by nothing versus sound money. This period of the market is the deciding battle of the Mahabharata. This period, today, is an attempt to drive you out of your wits, which is in my opinion the last and largest attack you will see perpetrated on us before gold closes over $3500. This period of pain will not be measured in months, but counted in history as days.

The gold banks are not stupid but they are a form of Wile E. Coyote.

True liquidation is not what you are watching. You are watching a game that you have the power not to allow to win. You have to have courage, and I offer you my absolute conviction of the correctness of being long gold and long good gold shares, long silver and long silver shares at this time. This is war, and you are in the middle of it. Do not let the bastards drive you nuts. They count on you having no ability to stand their well practiced performance. Stand firm and stay the course. Now that the gold banks have us surrounded we will not allow them have their way with us. They will not get away.

Consider this “Broken Arrow” in the military sense, and please ladies and gentlemen, prepare to defend yourself by not giving in to the purposes of the devils we oppose. It is that easy. They are truly devils. They have not one redeeming human quality. As when Chesty, The Marine Sergeant Major told his troops ( which was his real family) in Vietnam when they were overrun, to prepare to defend themselves. His troops followed his courage and fought hand to hand, eye to eye until the enemy had been repulsed. You can do this. You can defend yourself. You need only do nothing, and not allow the enemy to play with your head as they play the price. This is war. Please stand your position, and which will in a real sense give them the high sign, the high one.

We will win, I promise you.

Love,

Santa

http://www.jsmineset.com/2013/01/25/defend-yourself-by-not-giving-in-day-2/

Quisp's picture

1 ozt gold buffalo

I did my part, and took advantage of the sale prices and bought my first gold buffalo! SaaaWEET!

Bugzy's picture

Maybe I was a bit too harsh

I made a negative comment on this site the other day about Santa being too opaque.

I take it back, he seems ok.

Bugzy

Dr Jerome's picture

You want it, you got it

Silver 66... here you go:

Corporate sponsors!  But the TBTF banks seem to downplayed here.

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