BankingFinanceInvestments & Insurance

More Bankster Corruption and $46.6 Million in Fines

After recently being granted exemptions by the DOL, criminal banksters are fined for “spoofing” the futures market.

Just last week, I posted an article regarding the Department of Labor’s decision, despite ongoing litigation, to grant exemptions to several major banks: to JPMorgan Chase & Co., Deutsche Investment Management Americas Inc. (DIMA) and Certain Current and Future Asset Management Affiliates of Deutsche Bank AG, Citigroup Inc., Barclays Capital Inc., UBS Assets Management (Americas) Inc.; UBS Realty Investors LLC; UBS Hedge Fund Solutions LLC; UBS O’Connor LLC; and Certain Future Affiliates in UBS’s Asset Management and Wealth Management Americas Divisions.

Today, the U.S. Commodity Futures Trading Commission (CFTC) announced enforcement action against three banks (Deutsche Bank, UBS, and HSBC), along with six individuals in association with “spoofing” the precious metals futures contracts.

According to the announcement, Deutsche Bank will be required to pay $30 million in fines, UBS $15 million, and HSBC $1.6 million.

In short, spoofing is an illegal technique used to drive pricing up or down by placing bids to buy or sell futures contracts with the intent of canceling the orders prior to fulfillment.  The bidding creates the illusion of pricing demand, which then influences subsequent contract bid pricing.

Spoofing is also used in stock and bond trading to influence markets.  It’s just one of several market manipulating tactics that need to be corrected, as I previously addressed in one of my Five Simple Steps segments.

It’s important to note that the three banks settled civilly rather than being charged criminally.  Otherwise, the exemptions given by the DOL would be rescinded.  While three of the individuals face federal charges, the remaining three only face civil charges.

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  1. I wonder what it would be like if money and power were not the driving force in the world. Thanks for the article. I wonder how many people really know what is going on in the world of finance.

  2. Is there trouble down the road for gold and silver, among the precious metals, that someone is not telling us, due to the supply of those precious metals? I hear there is a shortage every time I look, and the fact that some banks, or their subsidiaries, are selling gold and silver and placing it in trust in some depository, and then selling the same gold and silver again, without having the gold or silver in reserve. I know what I read sometimes may not be true, but when I see a story like this, it makes me suspect something isn’r right about the commodities markets.
    Every time I buy gold or silver, I take physical possession and never have allowed it to go into someone else’s bank.

    1. For someone like you who has physical gold or silver, there is no problem at all. Some of the people who have entrusted their gold or silver to be “stored” by others may find themselves in another position altogether. Since we were taken off the gold standard by Nixon in 1971, the US has reported 8,133 metric tons of gold reserves. However, an audit of form FT900 from 1991 (the earliest available information) to 2014 shows that gold is being rehypothecated (same physical gold sold more than once). FT900 reports US imports and exports, with a line item for gold. From 1991 to 2014, the US exported roughly 5,577 metric tons more gold than the total supply available for consumption, according to research done by former a Wall Street Journal columnist, Jeff Opdyke. How much did we export between 1971 and 1991? Do you suppose there is a reason the Federal Reserve resists audits? Is there any gold remaining in Ft. Knox? Both gold and silver should be valued much higher than they are based on the value of currencies in circulation. Those who hold physical gold and silver will realize an explosion in value once the truth is revealed, in my opinion.

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