"JPMorgan Chase & Co (JPM.N) has won the dismissal of a nationwide investors' lawsuit accusing the largest U.S. bank of conspiring to drive down silver prices.
U.S. District Judge Robert Patterson in Manhattan said the investors, who bought and sold COMEX silver futures and options contracts, failed to show that JPMorgan manipulated prices at their expense, including by amassing huge short positions that were not justified by market events at the time.
In a decision made public on Monday, Patterson said that while the investors showed that JPMorgan had the ability to influence prices, a fact the bank did not dispute, they failed to show that the bank "intended to cause artificial prices to exist" and acted accordingly.
A lawyer for the investors did not immediately respond to a request for comment.
JPMorgan did not immediately respond to a similar request.
Investors had, in at least 43 complaints filed in 2010 and 2011, accused banks of amassing hundreds of millions of dollars in illegal profit by manipulating silver prices.
After the lawsuits were consolidated, HSBC Holdings Plc (HSBA.L) was dropped in September 2011 as a defendant, leaving JPMorgan and 20 unnamed individuals as defendants.
Patterson had rejected the investors' claims in December, but gave them one last chance to bolster their case.
The complaint had sought triple damages for what it called JPMorgan's antitrust violations in distorting silver prices between 2007 and 2010, including through alleged "fake" trades late in the day when market volume was thin.
The Commodity Futures Trading Commission began probing allegations of silver price manipulation in 2008, and two years later proposed regulations to give it greater power to thwart traders who try to manipulate prices.
The case is In re: Commodity Exchange Inc Silver Futures and Options Trading Litigation, U.S. District Court, Southern District of New York, No. 11-md-02213."
We should have known JP Morgan was not a nice fella from the beginning. From a biography of Nikola Tesla:
"In December of 1900, Tesla returned to New York and began work on a “World-System” of wireless transmissions intended to link up the world’s signal stations (telephone, telegraph, etc.). The backing investor, J.P. Morgan, who had financed the Niagara Falls project, terminated the contract upon learning that it would be “free” wireless electricity for all to tap into."
New York Fed Courts are an Abomination....Judge was over 90 Years Old...They gave him this case specifically because they knew it would be dismissed no matter what....Rigged Justice System....USA is a Failed State
How do you prove intent? There is no way for an outsider to prove this. If the judge were to force jpm to hand over all their trade histories for silver long and short, dates and times and prices for each he could decide for himself by comparing the trades and the price movement of silver. this is all common sense stuff but no he makes the burden of proof on the plaintiffs which is impossible to prove by themselves. the only way to prove intent is for an insider within jpm to come forward and admit guilt. this is also extremely unlikely so the end result will be the same manipulation until there is either a real physical shortage where the comex cannot provide delivery and it becomes a global news story and the gig is up.
Sentiment: Strong Buy
One of the problems is that no entity ever really takes real delivery, with some minor exceptions like Sprott. They take electronic delivery from one so called vault to another vault of folks all in it together. So they are able to rehypothicate even the physical delivery. The system only gets screwed when a sovereign entity like Germany, asks for its physical to be delivered to them whereby they put it in their own vaults. And of course its not there so we promise to deliver it over a seven year period. JPM probably has no entity requiring that it ever account for its paper losses. It's government sponsored job is to just suppress the price discovery for the actual physical. I think the miners need to figure out how to cut out the middleman and sell to a real open market that would have supply demand dynamics influence the price. Much like the retail purchaser today who pays a premium over spot to offset the manipulation. The government likely puts pressure even on the manufacturers to not make public their desperate need for the scarce metal.
This is all going to be moot as the flight into hard assets has only just been ignited for the victims of "deposit" theft...
That was Pandora's box.
Sentiment: Strong Buy