By Michael Gray
Federal agents have launched parallel criminal and civil probes of JPMorgan Chase and its trading activity in the precious metals market, The Post has learned.
The probes are centering on whether or not JPMorgan, a top derivatives holder in precious metals, acted improperly to depress the price of silver, sources said.
The Commodities Futures Trade Commission is looking into civil charges, and the Department of Justice’s Antitrust Division is handling the criminal probe, according to sources, who did not wish to be identified due to the sensitive nature of the information.
The probes are far-ranging, with federal officials looking into JPMorgan’s precious metals trades on the London Bullion Market Association’s (LBMA) exchange, which is a physical delivery market, and the New York Mercantile Exchange (Nymex) for future paper derivative trades.
Continue reading Feds Probing JPMorgan Trades In Silver Pit
Related reading:
JPMorgan to Store Precious Metals in Singapore
Reuters (10 May 10)
Our comment:
As of May 7, 2010, precious metals ETF has not disclosed anything with the SEC about the investigations of its custodian for improper trading to depress the price of silver. The Form 10K filed on May 7 says “None” under “Litigation” section and there’s nothing in the notes to financial statements about this. They also say there are no reportable subsequent events (i.e., after the end of the quarter). The “related parties” are limited to the sponsor and the trustee.
For our questions about SLV, see our special Solari Report “GLD & SLV: Disclosure in the Precious Metals Puzzle Palace.”
