Morgan Whistleblowers Confess Bank Manipulates Gold & 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.
 
 
Maguire:  “You recall our King World News interview in March, 2010, which was directly after the public CFTC Commission Meeting ... And as you know, at the last minute I was suddenly uninvited to that meeting.  But luckily we had one commissioner ... who was willing to provide a forum for my evidence to be submitted

... Thanks to King World News for taking up this story, this news went mainstream.  But most importantly, Eric, it caught the attention of some serious Eastern hemisphere buyers who moved in (to these markets) from the sidelines.  They were buying it (gold and silver) aggressively.  Now, in this case the bullion banks were exposed to be naked short (gold and silver in 2010).”

Eric King:  “Andrew, I don’t have to tell you that the price of gold and silver exploded after that (March, 2010 King World News interview) interview.”

Maguire:  “Absolutely.  And I’m going to go into that in a minute, Eric, because it is quite astounding what happened after that.  A lot of people are really concerned about the upcoming 5-year anniversary, and the possibility of the statute of limitations bringing this all-important (CFTC) investigation to a close this month.

Very recently Commissioner Chilton assured me, and I’m going to quote him exactly, “I can’t appropriately express my frustration and disappointment with how we’ve handled the silver investigation.
 
Bart Chilton continues:  “And, as you know, I’m prohibited from actually saying much.  That said, I will not let September go by without speaking out if the agency doesn’t do so.”

Now, since the original CFTC Meeting, I’ve provided a very large amount of detailed evidence to the agency.  And what isn’t known, however, up until now, is during that time I was also contacted by two JP Morgan employees who told me they had a large amount of documented evidence of market trading abuses in gold and silver by their bank (JP Morgan).

Now, it was my understanding that this covered the same time period of metals abuses that I had prepared in my submissions.  And for their own protection I directed them to a law firm specializing in whistle blowers so they could formally provide this evidence under the Dodd-Frank Whistleblower Provision directly to the CFTC.

This would provide them the necessary protections which they would need if they were going to make such a submission.  Now, this was actually done in early June, 2012.  Not June, 2013, but June of 2012, which is staggering.  Now, I didn’t want to hinder any investigation, so I kept this information ‘under wraps,’ until now.

To date, as far as I’m aware, these JP Morgan whistleblowers have not received any meaningful response to their evidence (from the CFTC), nor have we seen any formal charges laid against this bank.  But needless to say, there is a lot of evidence on the table.  And you cannot have a multi-year investigation relating to abuses in the metals markets without there being an obvious and evermore embarrassing problem for this agency (the CFTC).

Eric, we now know the LIBOR scandal flew under the radar for 15 to 20 years, and it was only when the famous Bollinger email was leaked and published that a formal investigation and charges were laid against these banks.  This (LIBOR) investigation has resulted in some charges and it’s actually still going on today.

The point I am trying to make, Eric, is it amazes me what a little publicity will do to get some action.  Now, we as traders all knew the bullion banks’ manipulations were going on, but they were never reported by the mainstream media.  So obviously many people were skeptical, and once the evidence became mainstream, and especially after our King World News interview, all hell broke loose.

Directly after the meeting I was approached by some very large, well-connected Asian buyers who wanted to find out more about the level of leverage employed in the metals markets ... And once establishing there was a massive disconnect between the paper markets and the enormous unbacked, synthetic supply (of shorts) distorting these markets, I know they moved in to buy in size.

It was no coincidence gold didn’t look back from that day and it moved up over $800, from under $1,100, to (over) $1,900.  And silver moved up (an astonishing) $33, from under $17, to almost $50 in the same (time) period.  And that was despite strong bullion bank short selling opposition at the time.

This bullion bank opposition created such a mismatch between synthetic paper market supply and the actual immediately available physical inventories that were being drawn down, that it threatened to collapse at least two naked short bullion banks.  And it brought us full circle back to 2001, where Gordon Brown intervened to bailout Goldman Sachs, and a whole daisy chain of bullion banks who were in a similar position at that time.