JPM Whistleblower on the Manipulation of SLV/GLD

Wonder if anything will come from this, or will it get swept under the carpet?

From: Z A N
Organization(s):
JPMorgan Chase
Comment No: 57019
Date: 3/14/2012

Comment Text:
Dear CFTC Staff,

Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.

I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.

On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.

There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke's speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.

As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.

It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America's best kept secrets. Please do not allow this to turn into another Enron.

Kind Regards,
-The 1st Whistleblower of Many
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Well, if the scam does fall apart, I sure hope you have already bought your gold / silver, because the prices will skyrocket.

But especially take note of this:

Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.

Don't believe all the lies they tell the public on the major news networks. Things can turn ugly fast (especially next week when Greece tries to sell bonds)




But back to the silver manipulation, here is a video explaining the scam.

Excellent find!
I really hope this is the first of many, and i hope it spreads into every aspect of the crony financial system we have now.. Oh change will come.

Well if this truly happens, and the prediction comes true, the "S" will hit the "F".
Not only would this destroy every currency on the planet, it would force a global reset.
There would be no remaining value to paper money based on a fiat note.
Which is a global disease.

But this video was posted in 2010...
So I'd have to wonder when this was supposed to take place?








As of today, silver is $32ish an ounce.

reply to post by havok


It was just something that I had found last year, but goes well with the article.

reply to post by MidnightTide


Yea.......I already posted this. No one seems as pumped up about it as they should be. This is BIG news.
2nd

ZH said it's a fake, thats why nothing came of it.
Anyone can post a complaint on that site.

The Greece bailout is the new version of the american government shutting down.

Give me a break.

Hello everyone this is my first post on ATS ha I've recently come across a video that i found to be pretty interesting and should be shared. However I do not have enough posts to start a thread. I'm asking if someone could take a little time to watch this video www.youtube.com... (I hope that link works sorry I'm new ha) and perhaps start a thread for it. I'm interested in what people think about it and I believe it should be shared. Sorry if this is off topic. Thanks for the help.

reply to post by InGodsHands357




Haven't watched it yet, but here you go.

In the OP is says towards the end that JPM has huge net shorts on Gold and Silver. Does that mean the are betting for a huge drop, one in which they can make happen?

reply to post by MidnightTide


"Buy Silver and you'll get rich!!"

Well, no....

Look. Here is my opinion (not to be confused with my sourced facts)

Silver is a currency backing, you want silver (physical silver) in your portfolio to back your currency. If you are investing in Silver stocks, than the value of silver makes no difference. You clearly are not concerned about the USD hitting hyper inflation.

If Silver does hit $80 an ounce, than you won't really be all that happy with the extra money you got. The money will become more useless because of inflation if you want to make money from stocks. Assuming the dollar is going to be valueless, than buying shares under the assumption they will hit a high value in the valueless currency is royally counter productive. Most people on the street wouldn't know the value of silver and would have a hard time trading for it anyway. And unless you have paper records of your shares, you are pretty much SOL if your bank goes under.

The best thing you can do with Silver is trade it up for a different fiat currency (like Canadian dollars). At least with previous metals, when the value of the metals decreases, the currency you are measuring it with is strong. If you feel USD is becoming worthless, you can switch into currency, move to another market, and buy back the silver.

I mean, truthfully, gold and silver are basically fiat currencies as well. They do have some industrial purpose, but you would really just want to hold bullion as a backup to cash. Unless something seriously catastrophic happened to society, such as massive disease outbreaks or an asteroid hits, it's unlikely the USD will actually go under. The US military and nuclear weapons maintain the world order.

Ultimately, Gold is just a fear-monger bubble, and the gold bugs are keeping it up. Gold should always measure inflation. I use the commodities prices to measure the dollars true value, especially oil.

10% - 15% of your savings should be in physical metals. Just avoid any mutual funds and watch your stocks yourself.

The detailed information, and the specific indictments provided by this anonymous whistleblower are a carbon copy of the popular arguments framed by Ted Butler, Bill Murphy, GATA , and about fifty other precious metals analysts spanning the past 5 years.

I'm not say that the complaints are necessarily invalid, I'm just saying that out of thousands of informed and disgruntled PM investors, this letter could have been crafted by any one of them. And unfortunately I believe that to be the case.

GL

Originally posted by SunnyDee
reply to post by InGodsHands357

 

Haven't watched it yet, but here you go.

In the OP is says towards the end that JPM has huge net shorts on Gold and Silver. Does that mean the are betting for a huge drop, one in which they can make happen?

Is this for real...? It deserves it's own thread.

He's basically saying that a group of people in 45 states have recreated a Republic, he needs the other 5 on board. They have a currency that is backed by silver and ready to replace the current currency. He also said they have military backing if they can prove they are ready to govern.

And most importantly, he sounds very serious and sober.

If somebody was a conspiracy theorist, they might argue that the recently-released Goldman Sachs letter from the quitting whistleblower is a smokescreen to take attention off of this far more serious (and far less reported) example of bankster whistleblowing.

reply to post by badconduct


Yes indeed it needs it own thread. That was my intention, for someone to do this for me. I don't have enough posts. But it seems like it should be all over the place if this could really actually happen.... and yes he seems credible but I've yet to do any research on it. I was hoping the peeps at ATS could check it out. Someone should start a thread haha

Something that I think is overlooked sometimes by the gold and silver buyers is this;

Back in the 1930's the US Gov with Presidential Executive Order 6102 and the Fed confiscated gold.

Forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates By virtue of the authority vested in me by Section 5(b) of the Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933, entitled

An Act to provide relief in the existing national emergency in banking, and for other purposes~',

in which amendatory Act Congress declared that a serious emergency exists,

In the 1970's the Hunt Brothers tried to corner the silver market culminating in what became known as Silver Thursday, after a new rule was introduced that crushed the Hunt Brothers attempt.

Nelson Bunker Hunt and William Herbert Hunt, the sons of Texas oil billionaire Haroldson Lafayette Hunt, Jr., had for some time been attempting to corner the market in silver. In 1979, the price for silver jumped from $6/oz to a record high of $48.70/oz. The brothers were estimated to hold one third of the entire world supply of silver (other than that held by governments). The situation for other prospective purchasers of silver was so dire that the jeweller Tiffany's took out a full page ad in the New York Times, condemning the Hunt Brothers and stating "We think it is unconscionable for anyone to hoard several billion, yes billion, dollars worth of silver and thus drive the price up so high that others must pay artificially high prices for articles made of silver".[1] But on January 7, 1980, in response to the Hunt's accumulation, the exchange rules regarding leverage were changed, when COMEX adopted "Silver Rule 7" placing heavy restrictions on the purchase of commodities on margin. The Hunt brothers had borrowed heavily to finance their purchases, and as the price began to fall again, dropping over 50% in just four days, they were unable to meet their obligations, causing panic in the markets.

So given what we know about the current people in contol I don't see them allowing anything to happen that they don't want to happen.

The source link the OP provided is dead. So either this bogus or real, I'm going with bogus, unfortunately.

The Comment Cannot Be Found. Please Return to the Previous Page and Try Again.

Is this linked to the massive number of bankers quitting their jobs?

reply to post by User8911


tie in this whistleblower, the goldmann sachs one, and the video above, and all the resignations, it sure makes for an interesting theory.

Bill Murphy of GATA fame, posted these remarks on his website, Le Metropole Cafe this afternoon.

For those of you who aren't familiar with Dennis Gartman, DG is popularly regarded as a CNBC Commodities" Expert", but when it comes to trading the Gold market he has one of the worst track records in the business. His bias is typically negative, and he has always regarded adherents to the manipulation thesis as one might regard the "clients" at Camarillo State Hospital. So it is significant that even DG is willing to entertain the possibility that GATA has it right.

I indicated earlier in this thread that I believe the self-described JPM 'whistleblower' is probably a fraud, and I stand by that opinion. But as Bill Murphy implies, authentic or otherwise, this one letter has been a lightning rod in the ongoing battle for accountability and transparancy - a fair and equitable market place.

Regarding the JPM whistleblower letter on the CFTC web site. I have no clue whether it is legit or not in the sense that it really is a JPM employee spilling the beans. I have my doubts. However, the content seemed on the money and it engendered about as many emails to me as any over the past 13 years … and seemed to go a bit viral, which is good the way I see it. The letter got around so much, it even provoked the following comments from the widely read Dennis Gartman…

The bottom line so far is the letter has been a substantial plus so far, which would be an irony if not legit, as GATA has come up with SO MUCH on the market manipulation matter, only to have it go nowhere in the public domain. Course, then again, JP Morgan could publicly disavow the letter and its contents. What do you think the odds are of that?

ZIP!

Le Metropole Cafe is a pay-for subscription site so no link. Bill Murphy gladly authorizes the release of snips to the public domain...and this one was already out there.

Once again, my appreciation to the ATS hierarchy for allowing me to post the occasional link-less extract from Le Met.

OBE1