March 30, 2010
Last Thursday, the Commodity Futures Trading Commission held hearings on the possible imposition of commodity futures and options trading limits in the precious metals markets. Each of the five commissioners plus two CFTC staff members made presentations. In addition, 14 outside parties accepted invitations to make presentations.
This hearing came about in part because of long-term complaints from organizations such as the Gold Anti-Trust Action Committee and individual analysts such as Ted Butler, Reg Howe, James Turk, Frank Veneroso and Adrian Douglas that the gold and silver commodity markets have been subject to blatant extensive price suppression manipulation by the U.S. government and its trading partners.
Yesterday, during CFTC position limit hearings for gold and silver futures contracts, GATA Chairman Bill Murphy read a letter from London metals trader Andrew Maguire regarding how JP Morgan metal traders "bragged" about making money in the silver futures markets by manipulating them. Zero Hedge has already posted the full transcript of Mr. Maguire's correspondence, so to avoid redundancy, I will not replicate that correspondence here. More than two years ago, in October, 2008 I sent CFTC Commissioner Bart Chilton very compelling circumstantial evidence that massive manipulation was occuring in gold futures markets based upon my understanding of how massive shorts were initiated in the gold futures markets and bids sometimes pulled, creating a collapse in momentum, at precise times in the NY markets, to create waterfall declines in the gold futures market. Below is the correspondence I had with Mr. Chilton more than two years ago and my original blog post in its original format that I posted on the Underground Investor on October 16, 2008:
Cocky & Arrogant Traders Allegedly Brag That They Manipulate The Market
Andrew Maguire is a metal trader at the London Bullion Market Association. He and his wife were hospitalised following the accident, as a car came out of a side street and smashed into their vehicle. They have made a full recovery.
In a series of astonishing e-mails, Maguire previously set out his concerns to the US Commodity Futures Trading Commission's Enforcement Division about how JPMorgan was allegedly manipulating the markets using positions it inherited from Bear Stearns 2 years ago. But the CFTC has allegedly done nothing with the information.
CFTC whistleblower injured in London hit-and-run
6:39p ET Saturday, March 27, 2010
Dear Friend of GATA and Gold:
London metals trader Andrew Maguire, who warned an investigator for the U.S. Commodity Futures Trading Commission in advance about a gold and silver market manipulation to be undertaken by traders for JPMorgan Chase in February and whose whistleblowing was publicized by GATA at Thursday's CFTC hearing on metals futures trading was injured along with his wife the next day when their car was struck by a hit-and-run driver in the London area.
According to GATA's contact with Maguire, board member Adrian Douglas, Maguire and his wife were admitted to a hospital overnight and released today and are expected to recover fully.
Maguire told Douglas by telephone today that his car was struck by a car careening out of a side road. When a pedestrian who witnessed the crash tried to block the other driver's escape, the other driver accelerated at the pedestrian, causing him to jump out of the way to avoid being hit. The other driver's car then struck two other cars in escaping. But the other driver was caught by police after a chase in which police helicopters were summoned.
We'll convey more information about the incident as it becomes available.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.