A Shocking Allegation From Andrew Maguire: CFTC Must Respond Publicly, Or Answer To Congress

Andrew Maguire,  a British national who had testified before the CFTC in a public forum about the manipulation of silver a few years ago, has leveled a serious charge against the bank JP Morgan in a King World News interview.

Maguire says that he knows that two JPM employees have come forward as whistle blowers, and have sought legal aid and protection, alleging that they have testimony and evidence that J P Morgan has willfully manipulated the gold and silver markets.

I do not know Andrew Maguire. I do not know if what he is saying is accurate or not.

But this ought not to be a matter of 'belief' or uncertainty.   It is a matter of evidence and law and there are people in Washington who are paid to be informed about this on the public's behalf.

After the stunning scandal that emerged in the wake of Bernie Madoff's confessing to one of the largest Ponzi schemes in history, it came to light that the SEC had long been suppressing investigation into allegations of his crimes, and was ignoring evidence which had been supplied to them over a period of years by Harry Markopolos.

And now we have what could be a similar situation. 

Andrew Maguire claims that he has supplied evidence of market manipulation to the CFTC for some years, and further and even more damningly, two JPM employees have come forward and made similar allegations, with evidence that says they are correct.

I think it is not possible for the CFTC and the Obama Administration to continue to ignore such public allegations. The CFTC may use the shield of an 'ongoing investigation' since they have been looking into charges about this matter in the silver market going on five years now.  They have missed the date by which they promised results.

To continue to ignore this widespread and public questioning of the integrity of the markets that affect the whole world is not acceptable.

I am a little surprised that the appropriate committees in Congress have not invited Bart Chilton and chairman Gary Gensler to appear before them, and ask if they have any such evidence, and if these allegations are substantial.   Would this be Darrell Issa's Committe on Reform or the Banking Committee of which Senator Elizabeth Warren is a member.

Here is Congressman Darrell Issa's contact information:

DC Phone: 202-225-3906
DC Fax: 202-225-3303
Contact Representative Issa: http://issa.house.gov/contact/contact-me

Here is Senator Elizabeth Warren's contact information:

DC Phone: 202-224-4543
DC Fax: 202-228-2072
Contact Senator Warren: http://www.warren.senate.gov/?p=email_senator

Since JP Morgan has been under investigation for manipulation in the energy markets, and since there have been repeated scandals in the willful manipulation by banks and traders in LIBOR and key derivatives metrics, I think that this cannot be dismissed out of hand as a conspiracy. If there is evidence the people deserve to know it.

I suggest that you contact your Congressmen and Senators asking them to support such an inquiry.   You can find your congressional contact information here.

If you are not a US citizen, I suggest you contact your domestic representative and/or the US embassy in your country and express your concern over these charges.  Or perhaps you can drop an email to Senator Warren who seems to take these sorts of issues very seriously. At the least they could send a letter to the commissioner on behalf of the public and ask about this for the record.

Here is the link to Maguire's charges.  You may wish to include this link in your message.

Morgan Whistleblowers Allege Bank Manipulates Gold and Silver

In a stunning development, two JP Morgan whistleblowers have confessed that the bank manipulates the gold and silver markets. This is truly a shocking admission by the courageous JP Morgan whistleblowers. In a blockbuster King World News interview, London metals trader Andrew Maguire told KWN that the two JP Morgan employees came directly to him with hard evidence that the bank was actively manipulating the gold and silver markets.

This is a truly catastrophic event for JP Morgan, which up to now has denied manipulating these markets. Below Maguire takes KWN readers around the world on a trip down the rabbit hole as he discusses how he led the two JP Morgan employees to turn over the evidence to a law firm which specializes in high profile whistleblowers, and also to the CFTC. According to Maguire, the CFTC has virtually buried this information. Is this a cover up, or the next LIBOR scandal about to be exposed? Below is what Maguire had to say in this blockbuster interview...

Andrew Maguire's Long Awaited Interview on Developments in Gold and Silver

An interesting discussion about the opening of the China-based Pan Asia Gold Exchange and its potential impact on the global gold, silver, and currency markets.

My own expectation is that it will be met by concentrated gaming from the paper trade on the various exchanges, until things eventually sort themselves out and the market finds a truer price discovery based on actual supply and demand.

I suspect there will be an initial surge, and then a great push back, and finally a tug of war until the paper trade capitulates and leverage is resolved. Do not forget that this leverage and the existing imbalances were built up over a period of twenty years, and they have only been ten years in the unwinding so far, and are caught up in what I have called the currency wars.

The timing will be highly dependent on the context of the other markets and sovereign debt. I suspect that once the financiers are done messing about with Europe, they will turn once again to Asia.

I concur with Andrew's analysis of how the short side leverage will break down.  One may choose not to participate in the metals investment, but I think it is becoming almost insane to short it, except perhaps on a day trade.  The danger of a market dislocation is becoming too large for all but the TBTF firms to bear.

And although the percentage gains may ultimately be greater in the instruments such as miners, with of course the commensurate increased risk, I think bullion will continue to lead the way, since the reform of the naked shorting of equities will be dependent on changed demanded as the result of a breakdown first in some other market scheme, like the metals paper manipulation with the excessive use of leverage and the abuse of market pricing.

And although the Comex seems to be the focal point of all this discussion, there are some things that suggest that scandals may rock the London and even the Canadian exchanges and their banking systems, reaching perhaps to the higher levels of government.  There seems to be a new Triangle Trade in fraudulently misrepresented financial instruments going across the Atlantic, which includes the Caribbean and some of the other tax havens.

Andrew Maguire Interview on King World News.

King World Interview with Andrew Maguire 'the Silver Market Whistleblower'

"The Biggest Fraud in the World"

I do not know what to think about this, except to just offer it up to you for your own information.

I am disappointed, however, that only the blogs, and almost no one in the mainstream media, have bothered to cover this story and to speak to the principals, and to either debunk them, support them, or even consider what they have to say.

This really is like the Harry Markopolos story, trying to get a hearing on the Madoff ponzi scheme, and being repeatedly ignored, intimidated, and discouraged in every way possible by the establishment, and even fearing for his life.

Even if this is a mistake, a hoax, some conspiracy, it deserves a proper hearing and an airing in the public. Ignoring it raises even more questions, and serious concerns about the integrity of the US markets. If instead of a proper airing there are only the smears, and disinformation, and the usual sly ad hominem attacks, or even worse, I will begin to believe that it is true.

King World News Interview with Andrew Maguire and Adrian Douglas

I cannot believe that testimony is being completely ignored. I do not understand why this is a 'national security' issue. It seems just too bizarre to me.

Do people inside the trade know something that we don't know? Are these fellows frauds or just mistaken? Is this a hoax? Part of some conspiracy?

Or is this something coming right at us, that will end up hurting the public once again, as the rampant fraud in the financial markets has done so thoroughly.

Is there is something going on then it is time to bring it out into the open. If it is national security concern, or more properly the national interest, because it involves the US banking industry, how long do they think they can keep this sort of thing quiet?

If this is something else, why is it not aired, investigated, and nipped in the bud?

I am trying to keep an open mind on this, but it is not being made any easier by what looks like a curtain of silence while the stories and counter-moves are prepared.

I was disappointed that in the interview they never seemed to discuss the hit and run car incident.

I don't want to speculate or get paranoid on this but its not easy. We deserve to know the truth.

Note at night: I have now listened to this tape five times, carefully. It is a bombshell. This has to be dealt with, one way or the other. Bring it out into the light of day, and let the facts be known. This is either the equivalent of the fictionalized testimony on the order of the Salem Witch trials, or one of the most damning accusations of malfeasance in office against quasi-governmental agencies, and probably US officials, since Teapot Dome.

Giving the mainstream media the benefit of the doubt, they are afraid to touch it because it is radioactive. They will wait on the sidelines until something happens. And the strategy seems to be to stonewall, and hope it goes away. The American public is nortoriously fickle and if not reminded of it will move on to the next shiny thing, the next controversy of any type.

But the coverup is always the first mistake of a government in approaching a breaking scandal. But they never seem to learn. You deal with it up front and early. It was not the actual burglary at the Watergate that brought down the government, and took American into its 'long national agony.' It was, and always is, the coverup.