U.S. DoJ and CFTC Open Gold Rigging Investigations

41
Mon, Feb 23, 2015 - 10:59pm

Though these "investigations" will very likely lead to nothing but delays, obfuscation and cover-ups...just as the 5-year, CFTC silver "investigation" did...this evening's news is interesting, nonetheless.

The news item itself is from the Wall Street Journal. If you have an online subscription, you can read it here: https://www.wsj.com/articles/big-banks-face-scrutiny-over-pricing-of-met...

This report was then encapsulated by a site called "Financial Mines" and you can find their reporting here: https://blog.ctnews.com/financialmines/2015/02/23/report-doj-mines-metal...

And of course, as you might expect, the most comprehensive summary of the story comes from ZeroHedge: https://www.zerohedge.com/news/2015-02-23/ten-banks-including-jpm-goldma...

Apparently, this is a dual investigation. Gumshoes and flatfoots from the U.S. Department of Justice are scrutinizing the price-setting process for the precious metals in London while the contemptibly corrupt CFTC has opened an investigation here in the U.S. Whether or not either of these probes eventually leads to civil and/or criminal penalties remains to be seen but, given the past performance of these agencies, I don't think that anyone should get their hopes up.

At least, if anything, it's nice to have the criminal gold price suppression and manipulation scheme in the news again. The banks mentioned in the article are all of the primary Bullion Banks...The Evil Empire...The Cartel...whatever you'd like to call them and it's nice to see them singled out:

  • The Scoshe
  • Barclays
  • Credit Suisse
  • DoucheBank
  • SocGen (they of the Russian gold sales rumor back in December)
  • Tungstenman
  • JPMorgan
  • HSBC
  • Standard Bank Group
  • Unlimited BS

So, we'll see what happens. Maybe this will amount to something, maybe it won't. However, with even two agencies of the U.S. government now investigating precious metals price manipulation, it seems there are just three fools left in the entire world who stubbornly cling to the belief that the metals "markets" are free and fair. (I bet you can name them.) As for everyone else, we already know that this current scheme is doomed to certain failure, just like The London Gold Pool implosion in 1968. It's simply a matter of time, regardless of the findings and results of these new "investigations".

TF

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  41 Comments

infometron · Feb 23, 2015 - 11:05pm

monkey business

Well, we'll see if this has any affect on the early morning monkey business we are all too familiar with... if it at least has the affect of backing them off for a while, that would be a good thing... Oh, and first! Woohoo!

StevenBHorse · Feb 23, 2015 - 11:06pm

All C no B's

"price setting mechanism" Leads me to believe this is more about the daily fixings. I find it hard to believe that Eric Holder will turn into our White Knight He is a fucking piece of garbage. You are right that we shouldn't give our hopes up.

crylandjr · Feb 23, 2015 - 11:06pm

Bet the farm

That the Feds don't bite the hand that feeds them. 

infometron · Feb 23, 2015 - 11:10pm

To your point

And a heads up...

In the past, news items like this have often lead to almost immediate price raids. Be on the lookout.

infometron · Feb 23, 2015 - 11:15pm

@ Craig Re: To your point

Yes, nary a blip on the charts in response to this announcement

With spin as it is these days, it would be no surprise for the 'regulators' to conclude that the cartel has purportedly been artificially keeping the price up!! <-- sarc

silver66 · Feb 23, 2015 - 11:18pm

Not a surprise to Turdville

However we can expect the apologists to say they are shocked

Casablanca gambling? I'm shocked!

Silver66

​edit:4-1

ReachWest · Feb 23, 2015 - 11:27pm

Fun to Watch .. but

I don't hold out much hope that this will lead to anything other than more of the same and perhaps a few more mid-level bank staffers hanging themselves in a dark room someplace (and not by choice). A this point, I truly don't believe anything short of a total collapse of the system will end the PM rigging. If the PM rig fails - the CB's fail. We're no where near that yet. IMO. They'll obfuscate, lie, cheat, bribe, payoff, murder, threaten and throw pissy temper tantrums long before they allow the rigging to fail.

lakedweller2 · Feb 23, 2015 - 11:51pm

Save Time

Some sharp Congressman or Senator... Forget that. Somebody elected to Congress should anticipate the failure of our Regulators to do their jobs and begin immediately holding hearings monitoring the investigation and their lack of progress. Then impeachment hearings.

boomer sooner · Feb 24, 2015 - 1:37am

Add up the profits for one

Add up the profits for one year, multiply x 10%, and you will have the "fee" paid for playing with the market. Call it DOJ commission. I believe it is a legit business expense today.

AIJ · Feb 24, 2015 - 1:42am

An Interseting quote from the Jackass that might be relevant

"Thursday February 19th is the Chinese New Year. Expect all hell to
break loose very soon, as though not already. The Chinese sources have
indicated that on several fronts, the entire global financial system
with its many platforms will be disturbed, altered, and challenged.* The
Western dominance and control is no longer acceptable and will not be
tolerated further. The disruptions will pick up in frequency and
intensity and visibility, gradually seen into the end of January, with
acceleration in more powerful manner in the coming weeks. It will not
simply be the Gold market that endures shocks, but all the supporting
markets like FOREX currency, COMEX commodity, sovereign bonds, big
banks, even derivative structures. Commerce might be disrupted if it
results in weakened US control of the ultimate Gold market. The Chinese
have lost all patience with the dominant Western banker for their broken
global contracts, criminal deeds (including violence), and profound
corruption."

flyinkel · Feb 24, 2015 - 2:25am

Why do we even have to have a fix for gold and silver?

Why don't the markets just trade 24/7? Other things trade 24/7. If it didn't stop trading you would eliminate the daily price fixing and control and front knowledge of exactly which direction and to what degree the market will be valued.

P.S. I am past hearing all the lies, I couldn't even be bothered to open the articles and see what they said. It just doesn't matter. It's more fun to go to the dentist.

Safety Dan · Feb 24, 2015 - 6:01am

Ex-Plunge Protection Team

Ex-Plunge Protection Team Whistleblower: "Governments Control Markets; There Is No Price Discovery Anymore"

https://www.zerohedge.com/news/2015-02-23/ex-plunge-protection-team-whistleblower-governments-control-markets-there-no-price-d

Another interview by Pippa Malmgren. Rigged government data Jan 14 (2014)

Same story... 

Video unavailable

​Save time:

John Williams' shadowstats.com

Edit - 

ZH poster:

We didn't need a whistleblower... or perhaps everyone has forgotten this:https://sirt.cftc.gov/sirt/sirt.aspx?Topic=TradingOrganizationRulesAD&Key=28693

https://www.cftc.gov/stellent/groups/public/@rulesandproducts/documents/...

Safety Dan · Feb 24, 2015 - 6:04am

What Is China Building In The

What Is China Building In The South China Sea?

Submitted by Tyler Durden on 02/23/2015 - 22:25

Photographs indicate that massive construction projects are underway on the newly build islands at Fiery Cross and Johnson South Reefs, while less extensive but still serious construction is ondoing at Hughes, Gaven, and Cuarteron Reefs. Given the extent to which future control over the shipping lanes of the South China Sea will impact the global balance of power, China’s island construction is worthy of our attention.

 certain parts of the Spratly archipelago are claimed by no less than five different countries:

Vietnam, Malaysia, Brunei, Taiwan and China.

abguy4 · Feb 24, 2015 - 9:13am

So who do you think

So who do you think they will appoint to head-up the investigation?
I'm betting they use the Warren Commission.

Or maybe the 911 Investigation Commission.

Seriously.........using the Gov to investigate itself ?

Yah, that'll work.............................

CPE · Feb 24, 2015 - 10:21am
pforth · Feb 24, 2015 - 10:25am

Maybe they can get

Maybe they can get Bart Chilton to head up the investigation. He was so effective last time....

Angry Chef · Feb 24, 2015 - 11:27am

PM Investigation

I have to agree with Dave over at Investment Research Dynamics. Don't expect anything to come of this. I suspect a slap on the wrist and a fine as well. But I would prefer at least something a little more entertaining. Perhaps have Eric Holder, Trader Dick and Martin Armstrong publicly blow all the CEO's of the ten Banks.

Angry Chef · Feb 24, 2015 - 11:32am

lol

Thank you. That made me laugh.

realitybiter · Feb 24, 2015 - 11:52am

The riggers

and the Jackass are converging. The riggers are going to be "discovered" to be a network of will hidden, conspiring, "Lone rogue traders"....the banks will be found innocent, the lone traders will be too small to extract any compensation for the billions they have transferred from other investors, industry, etc, into the banks...

as the riggers get blown out, the markets will be shut down...the realization that they are severely underpriced will emerge...

and maybe that is when the reset begins.

But no one except some poor sap who thought he had a shot at the club, who has the wrong last name (Indian, again? Raj?) will go to the pokey. Justice served....miners get nothing, unless somehow they survived....

Rogue traders...wait for it....

You can read my prediction about Corzine 3 years ago and that was spot on.....

lakedweller2 · Feb 24, 2015 - 12:25pm

@realitybiter

Isn't Corzine in the Lake Como, Italy, Federal Prison?

s1lverbullet · Feb 24, 2015 - 3:25pm

@ Angry Chef

LMFAO!!!!!!!!!!!

Dyna mo hum · Feb 24, 2015 - 3:33pm
lakedweller2 · Feb 24, 2015 - 3:36pm

Used Car

Bought Obama's old 53 Ford from that guy. Said it was under warranty. Broke down the first day. I trusted that guy.

Luigi · Feb 24, 2015 - 3:42pm

@Realitybiter

You could be quite right. But while we get to the end point of all this, we might as well experience a mother of all raids, and the investigation will turn to a wording for all cartel apologists, where they claim that PMs were manipulated up in fiat price. That would also give loads of opportunities for the banks to flip sides and cover their shorts, maybe go full phyzz, and leave some others holding the bag. At least that could be the plan these investigating muppets have been told to go with.

Underdawg · Feb 24, 2015 - 3:47pm

Harry Reid

It looks like Harry got pistol whipped by a nailgun.

lakedweller2 · Feb 24, 2015 - 3:51pm

Reid

My understanding he went to a RAVE Party with one of the Kardashians.

SamSchlepps · Feb 24, 2015 - 4:06pm

A slightly more optimistic yet ominous outlook

We're of the goldbug variety so conspiracy theorists by nature - its in our blood. So, maybe just a simpleton, but my high-octane speculation would be that this is another positive step on the road to 'reset'. China, the East, or the NWO is not going to takeover/ inherit a broken system nor a tarnished one. We could only ever believe a cleaned up, souped up, unblemished, no 'bad' guys type system for setting an honest gold price. So the bullion banks get whacked on the wrist, the London fix gets a makeover, banks exit the commodity business, real delivery happens on the SGE, and life is wonderful - perhaps not for all.

Buts its a step toward a new system, of course, nobody goes to jail - we're way past that. Only the SS121 version stands in the way - it all falls apart when they slip out the USD.

The cleaning up of the system is a giveaway - it all has to be cleaned up before its passed over to the east. So I kind of look forward to March 20 when the new fix comes out with Chinese banks onboard or maybe it gets delayed for a bit.

An oldie, but maybe a goodie: Here's Sinclair from a video with Sprottmoney - https://www.sprottmoney.com/news/ask-the-expert-jim-sinclair-november-2013

Jim: Actually, what you’ve seen is the great flushing. That was Lehman Brothers. Now you’re going to see the great leveling, because in every equity market that’s been liquidity driven it gets to a point where general equities can no longer sustain the enormous levels they rise to and come down faster than they went up. That’s the great leveling. Coming out of the great leveling, which should take place sometime between 2014 and 2016, you come into the great reset. The great reset will be proposed in 2016 most likely by the BRICs themselves and turned down by Western finance. The BRICs will adopt it, the Western finance will eschew it except that four years later Western finance will adopt it. Of course when they adopt it, whenever you adopt somebody else’s invention you call it your own. I think that’s the timetable, that’s exactly what will happen and it’s during that 2016-2020 period that free gold may rise to prices that it is embarrassing to quote.

Barfly · Feb 24, 2015 - 4:27pm

Yawn

Hooray, another opportunity for "regulators" to demonstrate their "effectiveness." I feel underwhelmed, just like everyone above.

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