JP Morgan and HSBC sued for silver manipulations
Oct 28, 2010
(Reuters) - JPMorgan Chase & Co and HSBC Holdings Plc were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices, and reaping an estimated hundreds of millions of dollars of illegal profits.
The banks, among the world's largest, were accused of manipulating the market for COMEX silver futures and options contracts from the first half of 2008 by amassing huge "short" positions in silver futures contracts that are designed to profit when prices fall....
The lawsuits were filed one day after the Commodity Futures Trading Commission proposed regulations to give it greater power to thwart traders who try to manipulate prices.
Perhaps this will put a damper on illegal manipulation, and this might allow a rise in the price of silver in the future.