Whistleblower vs JPMorgan
Mar 15, 2012
This is probably the most startling news of all. It is a letter from an employee of JPMorgan to the Commodity Futures Trading Commission, telling of the illegal suppression of gold and silver prices, as well as the precarious position that JPM is in due to the Greek bond crisis. He was inspired by the scathing March 13 letter from Greg Smith regarding Goldman Sachs.
The most startling fact of all is that the CFTC has actually published the letter on its web site yesterday, March 14, 2012:
With the release of Mr. Smith's open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no long can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions.
It appears that Mr. Smith has inspired this Whistleblower from JPM. Among some of the charges being leveled, he says:
Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days.
Previous news accounts said that the risk was only about $3 billion, which would not be enough to do any serious harm to the economy. This whistleblower says the real figure is "in excess of $1 Trillion USD." This lines up with what Bix Weir has been telling us, that when those failed bonds go up for auction on March 19, it will prove to be an economic disaster.
Robert Gottlieb. . . was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market.
He then says that JPM holds 25% of the massive short positions in the silver futures market, which is a violation of government rules and is legally defined as being unlawful "manipulation." He then confesses that JPM is involved in "the hiding of client assets from MF Global," which went bankrupt on Oct. 31, 2011.
This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.
Wow! I wrote about the significance of the MF Global bankruptcy last November and December:
He goes on about the silver and gold manipulations, saying,
. . . this most recent crash in gold and silver during Bernanke's speech on February 29 is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.
Silver and gold ought to be very good investments for people. However, when prices are artificially manipulated by JPM and "4 other major institutions," the average investor is fleeced, and these big manipulators make money. Selling "short" is a bet that makes money when prices go down--at the expense of those who bought the contracts, thinking that prices will go up.
If this can be proven in a court of law, JPM will be so besieged by lawsuits by those who lost money on investments that the company will immediately be bankrupt.
Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America's best kept secrets. Please do not allow this to turn into another Enron.
The 1st Whistleblower of Many
With resignations now up to 320 among CEO's of financial institutions in just the past few months, it is becoming increasingly plain that the rats are leaving the ship before it sinks.
First Goldman Sachs, now JPMorgan. I wonder who will be next?