06 April 2012

Blythe Masters Speaks Out On JPM and Market Manipulation: Take Our Word For It

A number of people have asked me what I think about Blythe Masters' interview on CNBC in which she categorically denies that JPM is involved in anything but legitimate hedging of customer positions in the silver market.

I think a detailed description of all of JPM's hedging positions in the futures and derivatives market, and the related customers and bullion holdings, should be supplied to Gary Gensler's CFTC as government regulator so they can look them over.    That is what the CFTC has been asked by the people who pay them, the investing public, to do.

And he and his staff should examine the evidence for any conflicts of interest and anomalies in them, for example, hedging related to SLV. They should also carefully examine trading patterns that JPM engaged in over a one year period with special attention to daily drops in price of over 3 percent.

And then Mr. Gensler can present his report to Congress, and the details to select members of the Finance Committee including Ron Paul, and swear under oath that these are legitimate hedging positions and that there is no manipulation in silver market. And then I might believe it.

Mr. Gensler has been working on such a report for almost four years and has said nothing. JPM had been previously sued for manipulation in the metals market, and one of their co-defendants, Barrick, reportedly put forward a motion to dismiss on the grounds that they were acting under the direction of the Fed.

So you might understand any skepticism as to what Blythe Masters might have to say about her substantially profitable trading positions to a friendly interviewer on a financial network.

JPMorgan Trader’s Positions Said to Distort Credit Indexes.

Predatory JPM Swap Deal Pushes Alabama County Into Bankruptcy

Given the actions and recent history of the financial industry, it is rather disingenuous, if not presumptuous and even arrogant, for anyone to demand the public's faith in it, their confidence and trust, without the firm reassurance of objective evidence and the rule of law.