Despite manipulating precious metals prices, JP Morgan is still at the heart of the LBMA, SBMA and COMEX


With a bunch of former JP Morgan valuable metals merchants at present on felony trial in entrance of a federal jury in Chicago, accused of participating in a racketeering conspiracy involving valuable metals value manipulation, commodities fraud and commerce spoofing, whereas one other group of their colleagues have already pleaded responsible, now is an effective time to ask how the financial institution JP Morgan remains to be thought of match and correct to not solely proceed to commerce within the valuable metals markets, however to proceed to actually dominate your entire valuable metals business in London, Singapore and New York, with the assist of the London Bullion Market Affiliation (LBMA), the Singapore Bullion Market Affiliation (SBMA) and the CME Group (operator of the COMEX and NYMEX).

Whereas JP Morgan made a deferred prosecution cope with the US Division of Justice (DoJ) and Commodity Futures Commerce Fee (CFTC) in 2020 and admitted wrongdoing for the felony conduct of quite a few JP Morgan merchants and gross sales personnel on the financial institution’s valuable metals desk positioned in London, Singapore, and New York, whereas paying US$ 920 million within the type of a felony financial penalty, felony disgorgement, and sufferer compensation in relation to this felony valuable metals scheme, the LBMA and SBMA and CME Group (proprietor of COMEX), as you will notice under, proceed to not solely welcome the confirmed felony financial institution JP Morgan with open arms, however to permit JP Morgan to function on the highest ranges of every organisation.

Ongoing Trial of Nowak & Co

The present felony trial, which kicked off on Friday 8 July 2022, with the US DoJ and CFTC as prosecution, accuses Michael Nowak (former head of JP Morgan’s valuable metals buying and selling desk), Gregg Smith (former JP Morgan valuable metals dealer) and Jeffery Ruffo (former JP Morgan valuable metals salesman) of being concerned in a felony enterprise that entered and cancelled hundreds of faux valuable metals futures orders (misleading orders) for gold, silver, platinum and palladium futures contracts traded on COMEX and NYMEX between March 2008 and August 2016 as a way to manipulate valuable metals costs in addition to manipulate barrier choices primarily based on the futures costs.     

A fourth former JP Morgan valuable metals dealer, Christopher Jordan, who left JP Morgan in December 2009, can be accused of comparable crimes by the DoJ and shall be tried individually.  

Michael Nowak (middle), former head of JP Morgan valuable metals buying and selling desk and former LBMA Board member

The Nowak – Smith – Ruffo path is being presided over by Edmond E. Chang, United States District Choose. Unbelievably  (or perhaps not), Nowak’s protection lawyer within the trial is none apart from David Meister, who from 2010 – 2013 was the CFTC’s Director of Enforcement, and who was on the CFTC in the course of the chairmanship of Gary Gensler throughout which era the CFTC did a 5 yr investigation into valuable metals value manipulation, after which shut down the investigation claiming it had discovered no proof of manipulation. That might clarify why Meister is known as “the Gensler Whisperer” by lawyer profile specialists Chambers.

On the time the indictment of Nowak, Smith and Jordan was unsealed in September 2019, US Assistant Legal professional Basic Brian A. Benczkowski on the DoJ stated: 

“The defendants and others allegedly engaged in a large, multiyear scheme to govern the marketplace for valuable metals futures contracts and defraud market individuals.

Within the present trial of Nowak, Smith and Ruffo, the US Authorities is asking two different former JP Morgan valuable metals merchants as witnesses for the prosecution, specifically John Edmonds, Christian Trunz, and one colleague of Gregg Smith’s who labored with him at Bear Stearns, specifically Corey Flaum.

Edmonds and Trunz have already pleaded responsible to their roles within the JP Morgan felony scheme, and Flaum has already pleaded responsible to manipulating valuable metals costs through COMEX futures between 2007 and 2016.

As of the time of writing, John Edmonds, Corey Flaum and Christian Trunz have all simply testified to the federal jury within the Nowak – Smith – Ruffo trial. See right here for Edmonds testimony, right here for Flaum’s testimony, and right here for Trunz’s testimony. The sooner responsible pleas of Edmonds, Trunz and Flaum have been as follows:

On 9 October 2018, John Edmonds pleaded responsible to “commodities fraud and a spoofing conspiracy in connection along with his participation in fraudulent and misleading buying and selling exercise within the valuable metals futures contracts markets”.

Edmonds admitted that:

from roughly 2009 by way of 2015, he conspired with different valuable metals merchants on the Financial institution to govern the markets for gold, silver, platinum and palladium futures contracts traded on the COMEX and NYMEX.

Notably, Edmonds additionally:

admitted that he discovered this misleading buying and selling technique from extra senior merchants on the Financial institution, and he personally deployed this technique a whole lot of instances with the information and consent of his speedy supervisors.”

On 25 July 2019, Corey Flaum (who labored with Gregg Smith at Bear Sterns earlier than Smith moved to JP Morgan) pleaded responsible to tried commodities value manipulation and admitted that:

“between roughly June 2007 and July 2016, [he] positioned hundreds of orders to govern the costs of gold, silver, platinum and palladium futures contracts traded on COMEX and NYMEX.”

Corey Flaum labored at Bear Stearns from 2006 till 2008, after which labored at Scotia Capital from 2010 till 2016.

On 20 August 2019, Christian Trunz, “a former valuable metals dealer on the London, Singapore and New York places of work of JP Morgan” pleaded responsible to conspiracy and spoofing fees. Trunz additionally admitted that:

“between roughly July 2007 and August 2016, [he] positioned hundreds of orders that he didn’t intend to execute for gold, silver, platinum and palladium futures contracts traded on the NYMEX and COMEX).”

Notably, the DoJ says that Trunz admitted that he:

“discovered to spoof from extra senior merchants, and spoofed with the information and consent of his supervisors.”

Trunz is fascinating in that he labored at numerous instances in all three places that JP Morgan’s international buying and selling desk spans, i.e. London, Singapore and New York. 

The responsible please of Edmonds, Flaum and Trunz over 2018 – 2019 then allowed the US Division of Justice to maneuver ahead with its indictment of Michael Nowak, Gregg Smith and Christopher Jordan, an indictment which was filed on 22 August 2019, after which unsealed on 16 September 2019. The truth is, the Nowak – Smith – Jordan indictment was filed solely 2 days after Trunz had pleaded responsible.

In its indictment assertion of Nowak, Smith and Jordan, the US DoJ stated that:

“between roughly Could 2008 and August 2016, the defendants [Nowak, Smith and Jordan] and their co-conspirators have been members of JP Morgan’s international valuable metals buying and selling desk in New York, London and Singapore with various levels of seniority and supervisory duty over others on the desk. 

Because it pertains to the RICO conspiracy, the defendants and their co-conspirators have been allegedly members of an enterprise – specifically, the dear metals desk at JP Morgan – and carried out the affairs of the desk by way of a sample of racketeering exercise, particularly, wire fraud affecting a monetary establishment and financial institution fraud.

The indictment alleges that the defendants engaged in widespread spoofing, market manipulation and fraud whereas engaged on the dear metals desk at JP Morgan by way of the position of orders they meant to cancel earlier than execution (Misleading Orders) in an effort to create liquidity and drive costs towards orders they needed to execute on the alternative facet of the market. 

In hundreds of sequences, the defendants and their co-conspirators allegedly positioned Misleading Orders for gold, silver, platinum and palladium futures contracts traded on the NYMEX and COMEX.”

On 14 November 2019, the US DoJ then filed a superseding indictment, which added Jeffery Ruffo to the racketeering conspiracy, together with Nowak, Smith and Jordan.

Then on 29 September 2020, the DoJ introduced a bombshell, specifically that JP Morgan had agreed to a Deferred Prosecution Settlement (DPA) with the DoJ, particularly that JP Morgan had:

entered right into a decision with the Division of Justice to resolve felony fees associated to …tens of hundreds of episodes of illegal buying and selling within the markets for valuable metals futures contracts” and agreed to “pay over $920 million in a felony financial penalty, felony disgorgement, and sufferer compensation”.

Within the DoJ assertion from 29 September 2020, Assistant Director William F. Sweeney Jr of the FBI’s New York Area Workplace stated that”

 “For almost a decade, a big variety of JP Morgan merchants and gross sales personnel overtly disregarded U.S. legal guidelines that serve to guard towards criminal activity within the market.”

“In line with admissions and courtroom paperwork, between roughly March 2008 and August 2016, quite a few merchants and gross sales personnel on JPMorgan’s valuable metals desk positioned in New York, London, and Singapore engaged in a scheme to defraud in reference to the acquisition and sale of gold, silver, platinum, and palladium futures contracts (collectively, valuable metals futures contracts) that traded on the COMEX and NYMEX.”

Within the Deferred Prosecution Settlement (DPA), “JPMorgan” was outlined as “JP Morgan and its subsidiaries JPMorgan Chase Financial institution, N.A. (JPMC), and J.P. Morgan Securities LLC (JPMS) and their subsidiaries and associates, and their officers, administrators, staff and brokers.”

The DoJ assertion from 2020 additionally referred to the subsequent stage of the investigation, saying that the DOJ “obtained a superseding indictment” towards Nowak, Smith, Jordan and Ruffo which fees them “for his or her alleged participation in a racketeering conspiracy and different federal crimes in reference to the manipulation of the dear metals futures contracts markets”.

Which illustrates properly for individuals who may not know that the continued trial of Nowak, Smith and Ruffo in July 2022 is a part of the identical felony investigation which JP Morgan purchased its manner out of for US$ 920 million in 2020.

Which brings us proper again to the central query, a.okay.a. the elephant within the room, which is, provided that JPMorgan’s valuable metals desk positioned in New York, London, and Singapore was manipulating the costs of gold, silver, platinum and palladium for greater than 8 years between 2008 to 2016, then why is JP Morgan nonetheless even allowed close to the dear metals markets in London, Singapore and New York, not to mention allowed to dominate these markets with the blessing of the organizations which administer these markets, specifically the LBMA and SBMA and COMEX?

London – JP Morgan and the LBMA

Let’s check out what I imply.

Regardless of its felony actions and valuable metals value manipulation, JP Morgan remains to be one of the crucial highly effective members of the London Bullion Market Affiliation (LBMA) and one of the crucial dominant banks energetic within the London gold and silver and platinum and palladium markets.

Regardless of its crimes and manipulations, there are at present (as of July 2022) three JP Morgan entities which might be members of the LBMA. These entities are JP Morgan Chase Financial institution which is a Market making member of the LBMA, JP Morgan Securities Plc which is a full member of the LBMA, and JP Morgan AG (Germany) which can be a full member of the LBMA.

JP Morgan Chase & Co – White collar crime 

Not solely that, however JP Morgan Chase Financial institution is likely one of the 7 Full LBMA Market Makers, and it quotes gold and silver costs in all three LBMA OTC merchandise, that are Spot, Forwards, and Choices.

JP Morgan Chase Financial institution NA (London department) can be one in every of 16 direct individuals within the every day LBMA Gold Value auctions, auctions which set a gold value which is used every day in all the pieces from ETF valuations, to mine gross sales contracts, to valuing billions of {dollars} of derivatives contracts, reminiscent of swaps and choices.  

Equally, JP Morgan Chase Financial institution NA (London department) can be one in every of 13 direct individuals within the every day LBMA Silver Value auctions.

However there’s extra, JP Morgan is one in every of solely 4 members of London Treasured Metals Clearing Restricted (LPMCL) , a non-public firm which runs your entire paper valuable metals clearing system in London. The truth is, JP Morgan was one of many founding members of LPMCL in 2001. See the BullionStar article right here for background. 

There are 2 present energetic administrators of LPMCL from JP Morgan, specifically Mark Amlin and Andrew Lovell. 

The truth is, LPMCL’s correspondence tackle is on the LBMA’s headquarters at seventh Ground, 62 Threadneedle Avenue within the Metropolis of London,  i.e. the LBMA and LPMCL share the identical workplace!

In valuable metals vaulting, JP Morgan can be one of many 3 financial institution custodians which function a vault within the LBMA London market (the opposite vault custodians that are the banks HSBC and ICBC Normal). The safety operators Brinks, Malca Amit and Loomis additionally run LBMA vaults in London.

This beforehand secret JP Morgan vault is positioned beneath a JP Morgan constructing between Carmelite Avenue and John Carpenter Avenue within the Metropolis of London, as defined in February 2013 right here. 

JP Morgan Chase Financial institution can be a market making member of the London Platinum and Palladium Market (LPPM).  As well as, J P Morgan Securities plc and J P Morgan SE are affiliate Members of the LPPM.

However wait. There’s much more. JP Morgan can be energetic on a lot of LBMA committees. There’s one JP Morgan consultant, Andrew Lovell, on the LBMA’s Bodily Committee. This committee “is liable for monitoring, growing and defending the Good Supply Record”. There’s additionally one JP Morgan consultant, Declan McKeever, on the LBMA Regulatory Affairs Committee.

LBMA – House of the fractional-reserve gold buying and selling scheme

Since JP Morgan operates one of many largest LBMA valuable metals vaults in London, there may be additionally a JP Morgan consultant within the LBMA Vault Managers Working Group,  nevertheless the members of this group should not publicized (since not like paper gold which doesn’t exist, vaults maintain actual bodily gold which is a excessive safety danger).   

The LBMA additionally runs just a few different working teams, one in every of which is the deliciously titled “LBMA Monetary Crime Working Group.” Presumably JP Morgan is just not on this group, however there once more, maybe they really run it, and use the discussion board to share their sensible expertise, reminiscent of valuable metals commerce spoofing and fraud, with the remainder of the members.

However the icing on the cake needs to be that on the day when the US DoJ unsealed its indictment towards JP Morgan’s international valuable metals desk head Michael Nowak on 16 September 2019, Nowak was nonetheless a board member of the LBMA. See BullionStar article “LBMA Board Member & JP Morgan Managing Director Charged with Rigging Treasured Metals” from 17 September 2019.

You may’t make this up. Then just a few days after the DoJ’s 16 September 2019 announcement, the LBMA was now not capable of hold its head buried within the sand and was compelled to take away Nowak from the LBMA Board. See BullionStar article “LBMA Removes JP Morgan’s Michael Nowak from the LBMA Board” from 20 September 2019.

So why is a financial institution whose valuable metals merchants manipulated costs for over 8 years, and within the phrases of the US DoJ, defrauded clients by way of “hundreds of cases of illegal trades” that “overtly disregarded U.S. legal guidelines that serve to guard towards criminal activity within the market” nonetheless allowed to be a member of the LBMA and to virtually dominate the London valuable metals markets?

Every little thing that JP Morgan’s valuable metals merchants did from 2008 to 2016 whereas manipulating the costs of gold and silver and platinum and palladium is in breach of the ideas of the Monetary Providers Authority handbook reminiscent of Precept 1 (Integrity), Precept 2 (Due talent, Care and Diligence), Precept 5 (Market Conduct), in addition to in breach of the LBMA code of conduct within the type of the Bullion Market annex of the Non-Funding Merchandise (NIPs) code which the LBMA was concerned in drawing up, and which was in power earlier than it was changed by the LBMA World Treasured Metals Code in 2017. A replica of the NIPs code might be seen right here – the-non-investment-products-code. 

In essence, Why have the LBMA and the LPPM not kicked JP Morgan out of their associations? Has the LBMA no ethical compass or ethics? Moreover, why does the Financial institution of England observer on the LBMA Board, Andrew Grice, not name for JP Morgan to be instantly ejected from the London Bullion Market Affiliation (LBMA) and the London Platinum and Palladium Market (LPPM) and completely banned from buying and selling, clearing and vaulting gold, silver, platinum and palladium in London?

Maybe it has one thing to do with the truth that, by way of Morgan Warranty Belief Firm of New York, JP Morgan was one of many 6 founding members of the London Bullion Market Affiliation (LBMA) in November 1987.

In case you take a look at the 1987 Memorandum of Affiliation of the LBMA, you’ll even see that it’s signed by Man Area of JP Morgan, who was on the time international head of the JP Morgan bullion division, and who turned the founding vice chairman of the LBMA. See additionally BullionStar article right here in regards to the LBMA’s founding.

So is the LBMA merely a cartel entrance for JP Morgan and its fellow bullion banks to manage the worldwide valuable metals markets with JP Morgan pulling the strings?   

Singapore – JP Morgan and the SBMA

Talking of the founding members of bullion market associations, most individuals don’t understand that the tentacles of the JP Morgan octopus stretch even to Singapore, the place, the Singapore Bullion Market Affiliation (SBMA) was … watch for it… co-founded by JP Morgan in 1993. I child you not.

Particularly, the Singapore Bullion Market Affiliation (SBMA) was based by Tim Gardiner of JP Morgan and Kerr Cruikshank of the World Gold Council (aka the World Paper Gold Council).

Tim Gardiner of JP Morgan was even the founding chairman of the SBMA. Right here’s a video of Tim Gardiner really confirming these info.

Present SBMA CEO, Albert Cheng additionally confirms these info in a SBMA article from 5 June 2019 the place he says:

“In 1993, the Singapore authorities introduced the implementation of the Items & Providers Tax (GST) scheme to all enterprise transactions. In response, JP Morgan and the World Gold Council felt it was essential to kind an business discussion board of bullion market individuals to foyer the federal government for concessions for gold buying and selling companies dealing in bodily transactions, therefore the beginning of SBMA.”

Singapore Bullion Market Affiliation (SBMA)

Albert Cheng is aware of all of this as a result of he was there on the bottom at the moment in Singapore because the preliminary honorary secretary of the SBMA at its inception in 1993, whereas additionally being the Singapore primarily based regional supervisor of the World Gold Council. It’s an enormous membership and also you ain’t in it!

Quick ahead to newer instances, and in March 2018, Gordon Cheung, who was beforehand a managing director of Bear Sterns and an government director of JP Morgan, was appointed as deputy director of the SBMA.

Proper now, JP Morgan representatives are additionally on the SBMA administration committee. A JP Morgan South East Asia (SEA) Ltd managing director, Amar Singh, is at present a member of the SBMA’s administration committee . Previous to Singh, Stephen Jani, a managing director of JP Morgan World Commodities, was the JP Morgan member of the SBMA administration committee from 2017 to 2019.

And previous to Jani, the JP Morgan consultant on the SBMA administration committee was Harshika Patel, one other managing Director of JP Morgan World Commodities. Patel was additionally on the SBMA’s Public Affairs Committee (PAC) at the moment.

Presently, JP Morgan SEA Ltd can be on the SBMA Good Supply Record committee.

The truth is, JP Morgan is in essentially the most prestigious membership class of the SBMA, specifically a Class 1 member. Aside from JP Morgan, just one different financial institution, ICBC Normal Singapore department, is a class 1 member of the SBMA. Not surprisingly the World Gold Council (the opposite co-founder of the SBMA) acquired a free go to even be outlined as a class 1 member of the SBMA.  

To qualify as Class 1 financial institution members of the SBMA –

“Class 1 Members that are banks and monetary establishments should fulfill the “Match and Correct” standards specified within the MAS “Pointers on Match and Correct Standards” (FSG-G01) as could also be amended every now and then and have a monitor report within the bullion business for a interval of not less than 3 years. “

MAS is the Financial Authority of Singapore. So what are the MAS Match and Correct standards for banks?

In line with the MAS doc titled “Pointers on Match and Correct Standards” which apply to ‘Related Individuals’ (i.e. all monetary entities together with banks):

“2. MAS expects a related individual to be competent, trustworthy, to have integrity and to be of sound monetary standing….This additionally underpins our necessities that the related individual performs the actions regulated beneath the related laws effectively, truthfully, pretty and acts in the perfect pursuits of its or his stakeholders and clients.

“8 The standards for contemplating whether or not a related individual is match and correct embody however should not restricted to the next:

(a) honesty, integrity and popularity;

(b) competence and functionality; (c) monetary soundness”

“13 Honesty, Integrity and Popularity

 The components set out within the following paragraphs are related to the evaluation of the honesty, integrity and popularity of a related individual. The components embody however should not restricted to whether or not the related individual:

(c) has been censured, disciplined, suspended or refused membership or registration by MAS or another regulatory authority, an operator of a market, commerce repository or clearing facility, any skilled physique or authorities company, whether or not in Singapore or elsewhere;

(e) has been the topic of any proceedings of a disciplinary or felony nature or has been notified of any potential proceedings or of any investigation which could result in these proceedings, beneath any legislation in any jurisdiction;

(g) has had any judgment (specifically, that related to a discovering of fraud, misrepresentation or dishonesty) entered towards the related individual in any civil proceedings or is a celebration to any pending proceedings which can result in such a judgment, beneath any legislation in any jurisdiction;

(h) has accepted civil legal responsibility for fraud or misrepresentation beneath any legislation in any jurisdiction;

Based mostly on it’s personal standards of “Match and Correct”, JP Morgan fails all of those assessments, the place “for almost a decade” between March 2008 and August 2016, because the US Division of Justice said, ”a big variety of JP Morgan merchants and gross sales personnel” from “JPMorgan’s valuable metals desk positioned in New York, London, and Singapore” engaged in “racketeering exercise” by way of a “felony enterprise”, and engaged in “widespread spoofing, market manipulation and fraudand engaged in “a scheme to defraud in reference to the acquisition and sale of gold, silver, platinum, and palladium futures contracts (collectively, valuable metals futures contracts) that traded on the COMEX and NYMEX.”

So why has Singapore’s MAS not acted towards JP Morgan? And why does the Singapore Bullion Market Affiliation (SBMA), figuring out that JP Morgan rigged valuable metals costs and carried out fraud for over 8 years whereas paying $920 million in a deferred prosecuted settlement with the US DoJ and the US CFTC, nonetheless enable JP Morgan to be a member of the SBMA, not to mention nonetheless enable JP Morgan representatives on to the SBMA Administration Committee? Enquiring minds wish to know.

USA – JP Morgan and COMEX

Lastly, let’s return to the commodity futures exchanges on which the felony actions of JP Morgan have been confirmed to have taken place – the Commodity Trade (COMEX) and the New York Mercantile Trade (NYMEX). Certainly the house owners and governors of COMEX and NYMEX have kicked out JP Morgan from persevering with to function on their exchanges?

Mistaken!

Regardless of throughout 2020 admitting felony wrongdoing and paying a felony financial penalty of US $ 920 million to the DoJ and CFTC for participating “in a scheme to defraud in reference to the acquisition and sale of gold, silver, platinum, and palladium futures contracts (collectively, valuable metals futures contracts) that traded on the New York Mercantile Trade Inc. (NYMEX) and Commodity Trade Inc. (COMEX), that are commodities exchanges operated by the CME Group, Inc”, JP Morgan remains to be one of many largest merchants of COMEX valuable metals futures contracts.

How the LBMA, SBMA and COMEX view the JP Morgan valuable metals value manipulations

This may be seen from the truth that by way of it’s home and road accounts, JP Morgan is likely one of the most energetic issuers and receivers of COMEX valuable metals warrants on the COMEX every month.

JP Morgan can be a COMEX permitted depository (vault storage supplier) for the storage of gold, silver, platinum and palladium used within the settlement of COMEX futures contracts.

Not solely that, however the JP Morgan vault in New York holds the biggest quantities of gold, silver, platinum and palladium listed on the COMEX stock experiences, in comparison with another COMEX permitted vault.

JP Morgan’s COMEX vault is positioned within the 5th basement stage (basement B5) beneath 1 Chase Manhattan Plaza (throughout the road from the New York Federal Reserve’s gold vault at 33 Liberty Avenue). As defined in March 2013.

Via JP Morgan Securities LLC, JP Morgan can be one of many largest clearing corporations of COMEX and NYMEX and a licensed clearing member of COMEX and NYMEX.

As well as, JP Morgan (together with Citibank) collectively maintain 90% of all gold and different valuable metals derivatives held by all US banks. See right here for dialogue.

Why has the COMEX Board of Governors not disciplined and expelled JP Morgan from any and all involvement in COMEX, not to mention permitting JP Morgan to proceed to be one of many largest merchants and clearers on COMEX and the biggest permitted vault operator of a COMEX vault?

In any case, there may be a complete part within the By-Legal guidelines of COMEX protecting Disciplinary proceedings, particularly Article 8. See right here.

Additionally, why did the CME “Market Surveillance” group, which is “liable for defending the financial functioning of trade markets by making certain the markets are free from manipulation” by “detecting, deterring, and stopping market manipulation”, by no means decide up on JP Morgan’s 8 years of felony manipulation of COMEX gold, silver, platinum and palladium futures costs?  

Now that the US Division of Justice has accomplished so, why has CME Group (proprietor of the COMEX and NYMEX) not prohibited JP Morgan from working on the COMEX and NYMEX provided that JP Morgan broke all the principles in its felony manipulation of gold and silver and platinum and palladium futures contracts on COMEX and NYMEX over an 8 yr interval?

Laughing all the way in which to his financial institution – Jamie Dimon, CEO of JP Morgan Chase

CONCLUSION

This text has drawn collectively the assorted items of the investigation into JP Morgan’s valuable metals manipulation in New York and London and Singapore, and the prosecutions and deferred prosecutions to date, in addition to the continued trial of Nowak & Co, in order to then present that JP Morgan remains to be not solely energetic within the valuable metals markets in these monetary facilities, however really nonetheless on the coronary heart of the LBMA and the SBMA and the COMEX, the place in all 3 circumstances it’s welcomed with open arms.  

The most recent revelations from the present Chicago federal trial of Michael Nowak, Gregg Smith and Jeffery Ruffo are startling. In line with Smith’s colleague at JP Morgan, Christian Trunz, who gave proof to the jury on 19 July 2022,

“Gregg Smith clicked his pc mouse so quickly to put and cancel bogus gold and silver orders for Bear Stearns Cos. and later JPMorgan Chase & Co. that his colleagues would joke that he wanted to place ice on his fingers to chill them down afterward, or that he should be double-jointed.”  

Since JP Morgan’s international valuable metals buying and selling desk spans the three places of New York, London, and Singapore, it’s affordable to imagine that it employs a observe the solar mannequin, wherein case the commerce ebook of the desk could be carried across the clock between the three places. If that’s the case, the buying and selling groups in London and Singapore would know the trades of JP Morgan’s New York merchants. So this begs the query, what are the UK’s Monetary Conduct Authority (FCA) and Singapore’s Financial Authority (MAS) going to do if or when Nowak, Smith, Ruffo and Jordan are discovered responsible? Open up investigations of their very own into the London and Singapore arms of JP Morgan’s international valuable metals buying and selling desk?

And the way will the LBMA, SBMA and COMEX react if or when the subsequent batch of JP Morgan valuable metals merchants are discovered responsible? Will it proceed to be enterprise as traditional? The reply sadly might be sure.



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