Saturday, March 27, 2010

Saturday, March 27.10 commentary..extremely important.

Good morning Ladies and Gentlemen:
First of all lets report on the bank failures of last night. There were 4 banks that failed:
Unity National Bank Cartersville GA 34678 March 26, 2010 March 26, 2010
Key West Bank Key West FL 34684 March 26, 2010 March 26, 2010
Desert Hills Bank Phoenix AZ 57060 March 26, 2010 March 26, 2010
McIntosh Commercial Bank Carrollton GA 57399 March 26, 2010
Details on the failures on Monday. The banks were not big.
Gold closed as expected up by $12.00 to 1104.20 and silver rose by 17 cents to 16.89.
The open interest on the gold comex remained relatively calm at 490,703 falling 2700 contracts.
The silver comex OI went up marginally by 277 contracts to 113,008 the same level that we left it on Tuesday night.
In the COT report released after the close of markets yesterday, big changes occurred:
the long speculators decreased their longs by a whopping 17,593 contracts and as well reduced their shorts by 1100 contracts.
The commercials really went to town: the raptor or smaller banks sensed economic danger as they piled into gold on the long side to
the tune of an increase in contracts to 14,679. The larger banks like HSBC and JPMorgan decreased their shorts by a smaller than expected
3793 contracts. The small speculators have vacated the arena altogether.
I should caution you that the big stuff occurred on Wednesday and Thursday..the days I was in Washington.
In silver a somewhat similar story:
the large speculators sold a massive quantity of silver contracts: decreasing their longs by 2200 contracts.
They also increased their shorts by 534 contracts.
In the commercial category, the commercials increased their short position by a smallish 107 contracts. These would be the smaller banks
who went on the buy side. The big commercials who are JPMorgan and HSBC decreased their short position by 2200 contracts as they covered their shorts.
The big picture however was Wednesday and Thursday and we will see these numbers next week.
I would like to go to the physical side of things at the delivery dest at the Comex for silver and gold.
Here is the latest inventory numbers from the comex:

COMEX Warehouse Stocks Mar 26, 2010

SILVER

ZERO ozs withdrawn from the dealer's (registered) inventory
306,458 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 54.25 Mozs
Total customer inventory 61.54 Mozs
Combined Total 115.80 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
ZERO ozs withdrawn from the customer (eligible) category
Total dealer inventory 2.01 Mozs
Total customer inventory 8.00 Mozs
Combined Total 10.02 Mozs

end:

Notes;

Note 1: please note again the 306,458 oz of silver that is being withdrawn from the customer list.

On Tuesday I tried to ask Bart Chilton if he is worried about the massive silver leaving the customer list. The moderator did not get to me as

38 people all had questions and he took only 7 of them. I asked Adrian Douglas and Jason Hommel, who were with us in Washington on this development

and they all agreed that nobody trusts a USA warehouse and they are vacating for that very reason.

Bart has always answered me officially on matters, but on this one he has not responded. Everything that I comment to him or to Mr Gensler would be on the

public record.

Lets go to the delivery notices:

In silver:

There were 11 delivery notices issued in the MAR silver contract. The total delivery notices for the month in silver stand at 4,088 or 20.4 Mozs.

Note 2: the total number of delivery notices issued stand at 20.4 million oz.
Note 3: STILL NO SILVER HAS LEFT THE DEALER INVENTORY..VERY STRANGE INDEED!!
Note 4: the no of oz exercised for the February is still at 4.6 million oz.
Lets see what is left to be served:

silver OI declined by 36 contracts:

Note 5: the 36 contracts represents 36 x 5000 or 1.8 million oz of silver.

Note 6 : the total number of oz waiting to be served and or delivered upon are represented by:

1,8 million oz + 4.6 million oz (Feb options exercised for metal) + 20.4 million oz = 26.8 milllion oz.

or a big increase of 1 million oz from Tuesday. Somebody is need of silver.

In gold:

There were 2 delivery notices issued in the MAR gold contract. The MAR gold contract total for the month is 718 notices or 71,800 ozs.

Note 7: the total number of oz standing is 71800 oz.

What is left to be served:

The open interest in the MAR gold contract reduced to 11 contracts,

Note 8: the number of oz left to be served is only 11 contracts or 1100 oz.

The total number of oz left to be served/delivered upon is 1100 + 71800 = 72900 or 2.35 tonnes of gold an increase from the 2.2 tonnes on Tuesday.

Somebody wants gold in a hurry.

I would also like to point out the big development of backwardation occurring in the silver comex and this late stage of the silver delivery process:

Silver went into slight backwardation of 0.2 cents MAR/APR (16.894/16.892) while for MAR/MAY contracts it is 1.2 cents I contango. There is $0.1 of contango in gold MAR/APR and $1.2 of contango for MAR/JUN.

This suggests scarcity and we are seeing this in the total absence of silver leaving the warehouse on the dealer inventory. Silver is leaving on the customer list for a different reason.

They are afraid of confiscation.

As many of you know, I participated as a witness at the CFTC hearings on Thursday. I would like to tell you that it is really a terrifying experience.

I am basically testifying to the "police" of the commodity exchange and telling them what they should be seeing and something they are turning a blind eye to.

I knew I had to be diplomatic and courteous at all times and I had to be very careful as to what I said.

For this reason, I kind of minimized myself and only gave the facts. My opinions (which probably did not matter) were left to a minimum.

I basically took the CFTC's own data with the Banking Participation Report and the huge BIS data in Nov 2009 to illustrate the huge short position of 2 major banks in silver

JPMorgan and HSBC and in gold, 3 banks but JPMorgan has the bulk of shorts in this one as well. I highlighted the OCC report in the usa which shows that JPMorgan has over 82% of the derivative risk in the

USA. The BIS report which only shows risks to the banks they monitor, showed that in silver, the increase in short position by the banks in the G 10 increased in oz eqivalent to 4 yrs annual production

of silver. The entire short position ( measured by the forwards) represents 10 yrs annual production.

In gold in the BIS report, the total increase in gold tonnage of the forwards or short totalled a massive 2300 tonnes with the mining sector cutting their hedge book to shreads.The increase in derivatives makes little sense in tradition gold-bank lending.

The total short by the banks in the BIS reports shows a massive 7500 tonnes short position by the bankers in the G10. The increase in tonnage of gold is represented by 2300 tonnes of gold. The total gold short or forwards is represented to the tune of 7500 tonnes of gold.

In question period, I referred to these major usa banks and they were named, JPMorgan and HSBC as gorillia banks as they are exerting their dominance on the market with massive short trades.

I would also like to bring up the big development: a whistleblower reported details on how the banking cartel executes its raids.

The trader is Andrew Maguire, a Goldman Sachs trader who meets with his buddies at JPMorgan at the pub. They brag on how they constantly fleece unsuspecting investors when they raid at various times.

At all times the signal is done in the very early trading in Asia by a set number of contracts followed by a secondary buy of a set number of contracts. This sets the raid in motion.

I will forward to you the emails and the modus operandi of these crooks. Andrew resides in England.

The story gets better. Andrew who always participated with his fellow banker friends, finally decided that he had enough of this criminal collusive activity

and he decided in November to write to the CFTC. He got their attention by stating there is a huge inside trading going on in the commodities of silver and gold

For a few months emails and telephone calls were exchanged with the chief counsel for the Enforcment division of the CFTC, Mr Ramirez. He was told to keep this confidential.

In February he got the same feeling that I got when interviewed by the CFTC. He asked to be a speaking member at the hearings that I participated in.

He was rejected. Can you imagine this? They had this trader spilling the beans and they picked me over Mr Maguire?

I leaving the juicy part to the end: unbeknowst to the Commission, he secretly taped all of his conversions.

We are seeking legal clearance to receive those tapes from Andrew.

We released this information at the hearings. Here is the disclosure:

ADDITIONAL STATEMENT BY BILL MURPHY, CHAIRMAN OF THE GOLD ANTI-TRUST ACTION COMMITTEE

HEARINGS ON THE METALS MARKETS, MARCH 25, 2010

On March 23, 2010 GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Mr. Maguire, formerly of Goldman Sachs, is a metals trader in London. He has been told first hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets and they bragged how they make money doing so.

In November 2009 he contacted the CFTC enforcement division to report this criminal activity. He described in detail the way in which JPM signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals along side JPM. He explained how there are routine market manipulations at the time of option expiry, Non-farm payroll data releases, and Comex contract rollover as well as other adhoc events. On February 3 he gave two days advance warning by email to Mr Eliud Ramirez, a senior investigator of the Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. Then on February 5 as it played out exactly as predicted further emails were sent to Mr. Ramirez in real time while the manipulation was in progress.

It would not be possible to predict such a market move in advance unless the market was manipulated.

In an email on that day Mr. Maguire said "It is 'common knowledge' here in London amongst the metals traders it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC allowing by your own definition an illegal concentrated and manipulative position to continue"

Expiry of the COMEX APRIL call options is today. There was large open interest in strikes from $1100 to $1150 in gold. As always happens month after month HSBC and JPM sell short in large quantities to overwhelm all bids and make unsuspecting option holders lose their money. As predicted in advance by GATA the manipulation started on March 19th when gold was trading at $1126. By last night it traded at $1085.

This is how much the gold cartel fears the enforcement division. They thumb their noses at you because in over a decade of complaints and 18 months of a silver market manipulation investigation nothing has been done to stop them. And this is why JPM's cocky and arrogant traders in London are able to brag that they manipulate the market.

It is an outrage and we are making available the emails from our whistleblower, Andrew Maguire available to the Press wherein he warns in advance of a manipulative event.

Additionally Mr. Maguire informed us that he has taped recordings of his telephone communications with the CFTC for which we are taking the appropriate legal steps to acquire.

-END-

Here is Bill Murphy on the subject and a copy of the emails from Andrew Maguire;

Andrew Maquire confided in Adrian because the CFTC refused to let him appear at the hearing. I mean how bad is that, especially with how we saw The Gold Cartel brutalize gold this past week? Can you imagine the police getting information about a rapist, who then should be under surveillance, and not doing anything about it when an informer confirms who the rapist is ... saying exactly how the rapist will commit a rape in advance .. the rape then occurs, and STILL the police do nothing? Then there is an investigation into the multi-rapes and the police do whatever they can do to squash the inquiries. You have to be kidding me!

Here are the copies of the emails between Andrew Maquire and Eliud Ramirez of the CFTC:

I sent you a slide of a couple of past examples of just how this will play out...

1. The news is bad (employment is worse) ,This will have a bullish effect on gold and silver as the USD weakens and the Precious metals draw bids spiking them higher.This will be sold into within a very short period of time (1-5 mins) with thousands of new short contracts being added overcoming any new bids and spiking the Precious Metals down hard targeting key technical support levels.

Scenario 2. The news is good ,(employment is better than expected), this will result in a massive short position being instigated almost immediately with no move up. This will not initially be liquidation of long positions but will result in stops being triggered again targeting key support levels.

Both scenarios will spell an attempt by the 2 main short holders to illegally drive the market down and reap very large profits. Locals such as myself will be 'invited' on board which will further add downward pressure.

The question I would expect you might ask is, who is behind the sudden selling and is it the entity/entities holding a concentrated position?

How is it possible for me to know what will occur days before it will happen? Only if a market is manipulated could this possibly occur.

I would ask you watch the 'market depth' live as this event occurs and tag who instigates the move. This would surly help you to pose questions to the parties involved.

This kind of 'not for profit selling' will end badly and risks the integrity of the comex and OTC markets.

I am aware that physical buyers in large size are awaiting this event to scoop up as much 'discounted' gold and silver as possible. These are sophisticated entities mainly foreign who know how to play the short sellers and turn this paper gold into real delivered physical.

Given that the OTC market (where a lot of the selling occurs) runs on a fractional reserve basis and is not backed up by 1/1 physical gold, this leveraged short selling where ownership of each ounce of gold has multi claims poses a very large risk.

I leave this with you, but if you need anything from me that might help you in your investigation I would be pleased to help.

Kind regards
Andrew T. Maguire

----- Original Message -----

From: Andrew Maguire
To: Ramirez, Eliud
Sent: Friday, February 05, 2010 2:11 PM
Subject: Fw: Silver today

If you get this in a timely manner,with silver at 15.330 post Data I would suggest you look at who is adding short contracts in the Silver contract while gold still rises after NFP data. It is undoubtedly the concentrated short who has 'walked silver down ' since Wednesday. Putting large blocks in the way of bids. This is clear manipulation as the long holders who have been liquidated are matched by new short selling as Open Interest is rising during the decline.

There should be no reason for this to be occurring other than controlling silvers rise. There is an intent to drive silver through the 15 level stops before buying them back after flushing out the long holders.

Regards
Andrew

----- Original Message -----

From: Andrew Maguire
To: Ramirez, Eliud
Cc: BChilton@cftc.gov ; GGensler@cftc.gov
Sent: Friday, February 05, 2010 3:37 PM
Subject: Fw: Silver today

A final e-mail to confirm the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday.How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview.I have honored my commitment not to publicize our discussions.

I hope you took note of how and who added the short sales ( I certainly have a copy) and I am certain you will find it is the same concentrated shorts who have been in full control since JPM took over the Bear Stearns position.

It is 'common knowledge' here in London amongst the metals traders it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits.I feel sorry for all those not in this loop.A serious amount of money was made and lost today and in my opinion as a result of the CFTC allowing by your own definition an illegal concentrated and manipulative position to continue.

Bart, for your part you made reference to it at the energy meeting. Even if the level is in dispute what is not disputed is that it exists. Surly some discussions should have taken place between the parties by now?. Obviously they feel they can act with impunity.

If I can compile the data then the CFTC should be able to too.

I would think this is an embarrassment to you as regulators.

Hoping to get your acknowledgement.

Kind regards
Andrew T. Maguire

----- Original Message -----

From: Andrew Maguire
To: Ramirez, Eliud
Sent: Friday, February 05, 2010 7:47 PM
Subject: Fw: Silver today

Just logging off here in London. Final note.

Now that Gold is undergoing short covering please look at market depth right now in silver and evidence the large selling blocks in a thin market being put in the way of silver regaining the technical 15 level which would cause a short covering rally and new longs being instigated. This is resulting in the gold silver ratio being stretched to ridiculous levels.

I hope this day has given you an example of how silver is 'managed' and gives you something more to work with.

If this was long manipulation in say the energy market the shoe would be on the other foot I suspect.

Have a good weekend
Andrew

From: Andrew Maguire
Sent: Tuesday, February 09, 2010 8:24 AM
To: Ramirez, Eliud
Cc: Gensler, Gary; Chilton, Bart
Subject: Fw: Silver today

Dear Mr. Ramirez,

I hadn't received any acknowledgement from you regarding the series of e-mail's sent by me last week warning you of the planned upcoming market manipulation that would occur in silver and gold a full 2 days prior to the Non Farm Payrolls data release.

My objective was to give you something in advance to watch,log and follow up in your market manipulation investigation.

You will note the huge 'footprints' left by the 2 concentrated large shorts were obvious and easily identifiable. You have the data.

The signals I identified ahead of the intended short selling event were clear.

The 'live' action I sent you 41 minutes after the trigger event predicting the next imminent move also played out within minutes and exactly as I outlined it would.

Surely you must at least be somewhat mystified that a market move could be forecast with such accuracy if it was free trading?

All you have to do is identify the large seller and IF it is the concentrated short shown in the bank participation report bring them to task for market manipulation.

I have honored my commitment to assist you and keep any information we discuss private, however if you are going to ignore my information I will deem that commitment to have expired.

All I ask is that you acknowledge receipt of my information, the rest I leave in your good hands.

Respectfully yours
Andrew T. Maguire

----- Original Message -----

From: Ramirez, Eliud
To: Andrew Maguire
Sent: Tuesday, February 09, 2010 1:29 PM
Subject: RE: Silver today

Good afternoon Mr. Maguire,

I have received and reviewed your email communications.

Thank you so very much for your observations.

-END-

As additional proof of how JP Morgan Chase and The Gold Cartel is ripping off the public we handed the press the following, which was sent to Commissioner Bart Chilton last Friday:

AN EXAMPLE OF GOLD PRICE MANIPULATION PREDICTED BEFORE THE FACT

On March 18th, 2010 the following appeared in the Midas Column:

"This week so far is right out of the cartel playbook. I went back to the week of February 1st when gold recently followed its 2%, 1%, steady, down pattern. This week is practically a carbon copy. As you can see in the first chart the blue line is the 2% cap, the red line is the 1% cap, and the green line is steady to down. In the second chart you see the 4th day- down hard. The inflow of spec longs is first capped at 2%, then managed for a few days until the cartel can attack frustrated longs and get them to bail. Since the script has held true so far I would not be optimistic about tomorrow."

(contributed by James McShirley)

On March 19th, 2010, as predicted the previous day gold was taken down in seconds by purportedly the dumping of 6000 contracts by a single trader.

Such predictable sell-offs are seen time and time again close to option expiry on the Comex each month and the release of Non-Farm Payroll data. The price is capped at no more than 2% gain, then capped the following day at 1% gain, then held steady and finally hit hard for a waterfall take down.

Bill Murphy
Chairman
Gold Anti-Trust Action Committee Inc.

7 Villa Louisa Road,

Manchester, Conn. 06043-7541 USA

I think it is best to let you read all the press releases on the hearings and let you judge for yourself.

I will put the entire hearings for you at the end of my commentary and you can see a nervous nelly (me) present and answer the CFTC's questions.

From Jessie:

25 March 2010

Whistleblower Speaks Out On J. P. Morgan's Market Manipulation - Reports Violations to the CFTC in the Silver Market

Do we have another Harry Markopolos here, describing in detail the manipulation of the silver markets by J.P. Morgan to the CFTC? How does this square with the testimony today from the CFTC Commissioners, who seem to indicate that the markets are functioning extremely well, and that investor can have full confidence in them?

I am led to understand that Mr. McGuire had offered to testify before the CFTC today, and that he was refused admittance. I do not know him, or the position he is in within the trading community. I cannot therefore assess his credibility or the validity of any evidence which he may present or possess. But I have the feeling that nothing will come of this…

http://jessescrossroadscafe.blogspot.com/2010/03/bombs
hell-whistleblower-steps-forward.html

From Tyler Durden of Zero Hedge:

Tyler Durden
Zero Hedge
March 26, 2010

Earlier today the CFTC held a sham hearing in which, among other thing, the organization discussed position limits in PM speculation, because, you know, it's the mom and pop speculators that destroy the precious metal market (not JP Morgan or the New York Fed mind you). The hearing could not have come at a more opportune time. GATA has just broken a major story, in which a London metals trader-slash-whistleblower exposes JP Morgan's silver price suppression/manipulation scheme. At this point none of this should be at all shocking, and the only thing that matters is when CFTC's ex-Goldmanite Gary Gensler will be fired for allowing hundreds of billions of dollars to be sucked out of the PM market on behalf of such major market manipulating entities as JP Morgan and the New York Federal Reserve, for whom it transacts. Don't worry – the answer to that rhetorical question is "never", as it is the administration's goal to make all the millionaires among the bulge bracket firms billionaires, via legalized theft from honest investors. Furthermore, if indeed the CFTC is complicit in these manipulative events, as GATA suggest, we hope our objective mainstream media readers enjoin GATA in seeking justice for this criminal breach of proper regulatory enforcement.
From GATA:
Additional Statement by Bill Murphy, Chairman
Gold Anti-Trust Action Committee
to the U.S. Commodity Futures Trading Commission
Washington, D.C., March 25, 2010

***

From the American Free Press, Pat Shannon:

WALL STREET FIXES GOLD PRICES
http://www.americanfreepress.net/rss/afp.xmlhttp:
//www.americanfreepress.net/rss/afp.xml

By Pat Shannan
A leading precious metals watchdog group says it has compelling proof the prices of gold and silver have been manipulated for years by Wall Street firms, and it is demanding government regulators take action.

The Gold Anti-Trust Action Committee (GATA) was formed in January 1999 to expose and oppose the manipulation and suppression of the price of gold. Its frustrated efforts to expose manipulation in the gold market parallel Harry Markopolos's seven-year quest to expose the Madoff ponzi scheme to the Securities and Exchange Commission.

What it has learned over the past 11 years is of great importance to the Commodity Futures Trading Commission's (CFTC) forthcoming hearings regarding position limits in the precious metals futures market.

GATA's chairman, William Murphy III, says, "GATA has evidence there are enormous physical short positions in the gold and silver markets that cannot be covered."

In a letter to CFTC Chairman Gary Gensler, a former partner at Goldman Sachs who once supported market deregulation now blamed for the recent financial meltdown, Murphy charged that GATA has collected reams of evidence "that Western central bank gold has long been mobilized and surreptitiously dishoarded to rig the gold market and influence related markets, and that this rigging has drawn upon the U.S. gold reserves."

He urged the CFTC to report on these markets and take appropriate action.

The CFTC is meeting as this newspaper goes to press on March 25 to establish position limits in the gold, silver and other precious metals markets. However, it could be none other than the CFTC's core banks and Gensler's former Goldman bosses that form the very core of the biggest market manipulation collusion syndicate in the history of the commodity markets.

Murphy wrote to Gensler on March 8: "Because of the decades-long interference with the gold market, we estimate the free-market price of gold is multiples of the current price. Growing stress caused by burgeoning physical bullion demand is threatening to lead to a price explosion, which will restore to the market the balance that regulation has failed to maintain. In our view, the Comex [New York Commodities Exchange] paper market will become dysfunctional, with 'force majeure' having to be declared as the concentrated shorts are unable to deliver on their obligations."

If GATA indeed has the evidence of massive physical positions impossible to cover, and should this evidence be made public, the repercussions for the price of gold and silver will be unprecedented.

Dedicated AFP readers will remember it was GATA that two years ago spent $265,000 for a full-page, onetime advertisement in The Wall Street Journal asking in broad headlines: "Anybody Seen Our Gold?" GATA's ad warned, "This manipulation has been a primary cause of the catastrophic excesses in the markets that . . . threaten the . . . world."

What GATA had warned against has come to pass, and its investigation has not ceased.

In pursuit of Obama's "transparency in the federal government," GATA has made Freedom of Information Act requests to the Federal Reserve and Treasury Department for a candid accounting of their involvement in the gold market, particularly in regard to gold swaps.

In a reply to GATA's lawyers dated Sept. 17, 2009, Fed Governor Kevin M. Warsh acknowledged that the Federal Reserve has gold swap agreements with foreign banks but insisted that such documents remain secret. As a result, last December, GATA sued the Federal Reserve in the U.S. District Court for the District of Columbia, seeking access to the Fed's withheld records of gold swaps.

In his lengthy letter, Murphy told Gensler, "Initially we thought the manipulation of the gold market was undertaken as a coordinated profit scheme by certain bullion banks, like JPMorgan, Chase Bank and Goldman Sachs, and that it violated federal and state anti-trust laws. But we soon discerned that the bullion banks were working closely with the U.S. Treasury Department and the Federal Reserve in a gold cartel, part of a broad scheme of manipulation of the currency, precious metals and bond markets."

GATA has long implicated the Comex as being a mechanism by which gold and silver price suppression is implemented, and the smoking gun is the excessive concentration of bullion bank positions in the gold and silver futures markets that enables market manipulation.

The CFTC's own reports of November 2009 show that just two U.S. banks held 43 percent of the commercial net short position in gold and 68 percent of the commercial net short position in silver. In gold, these two banks were short 123,331 contracts but long only 523 contracts, and in silver they were short 41,318 and long only 1,426.

Murphy asks, "How improbable is it that these two banks attract most of the investors who want only to sell short?" He went on to point out that GATA knew that the two banks that hold these large manipulative short positions, JPMorgan Chase and HSBC, held more than 95 percent of the gold and precious metals derivatives of all U.S. banks, with a combined notional value of $120 billion.

This concentration dwarfs the concentration in the gold and silver futures markets and should raise great concern about the lack of position limits on the Comex. Giving CFTC one more hurdle before closing, Murphy wrote, "It is also disturbing to us that HSBC is the custodian for the major gold exchange-traded fund, GLD, and that JPMorgan Chase is the custodian for the major silver exchange-traded fund, SLV. It is a significant material omission to fail to disclose to GLD and SLV investors that the custodian banks of the two exchange-traded funds have an interest in falling prices in the futures and derivatives markets."

He pointed out that detailed daily monitoring of gold trading reveals the pattern that the gold price consistently falls in the darkness of early dawn New York time when the gold cartel's traders report to work in London, and again following the evening gold price fix, when physical market pricing has concluded for the day, and in the access market following the Comex close.
http://www.americanfreepress.net/html/street_fixes_gold_216.html
Pat Shannan is the assistant editor of American Free Press. He is also the author of several videos and books including One in a Million: An IRS Travesty and I Rode With Tupper, detailing Shannan's experiences with Tupper Saussy when the American dissident was on the run in the 1980s. Both are available from FIRST AMENDMENT BOOKS for $25 each.
Subscribe to American Free Press. Online subscriptions: One year of weekly editions—$15 plus you get a BONUS ELECTRONIC BOOK - HIGH PRIESTS OF WAR - By Michael Piper.
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nfreepress.net/html/email_newsletter.html

end.

From the German newspaper: Bourse GO;de

GOLD-Manipulation? Wisst ihr, wie man Wildschweine fängt?

http://www.boerse-go.de/nachricht/GOLD-Manip
ulation-CFTC-Anhoerung-Wisst-ihr-wie-man-
Wildschweine-faengt-Barclays-Goldman-
Sachs-JPMorgan-Chase-Gold-Silber,a2118373,b117.html
-END-

Many of the German reports used the data that I presented in their articles.

England's financial times:

Financial Times:

Dispute over curbs on metal futures
By Gregory Meyer in New York
Published: March 26 2010 04:35 | Last updated: March 26 2010 04:35
US commodities regulators on Thursday poured cold water on complaints by gold, silver and copper traders urging limits on banks and investment funds trading in metal futures.

The Commodity Futures Trading Commission hosted a rare public meeting on metals after years of complaints from small investors that banks unfairly depress gold and silver prices.

Long dismissed by the CFTC, the investors were given a boost in January when the commission proposed hard caps on banks and speculators' positions in energy markets.

But while the US is the global capital of energy and grain futures trading, it plays a supporting role to London in metals markets. This raises the threat that a US futures crackdown would push trading away from those exchanges the CFTC regulates.

"The United States and, more pointedly, the exchanges registered with the commission, are not the market's epicentre," said Scott O'Malia, one of five commissioners at the body.

Commissioner Michael Dunn said new limits on futures trading without authority elsewhere "may result in less transparency in our markets."

The CFTC nonetheless gave witnesses hours to testify on US metal futures, predominantly traded on New York's Comex exchange.

Bill Murphy, chairman of the Gold Anti-Trust Action Committee, said JPMorgan and HSBC held "large manipulative short positions" in precious metals on the Comex, and said burgeoning bullion demand threatened to lead to a "price explosion". Gold hit a record of more than $1,200 an ounce in December.

Jeremy Charles, HSBC's global head of precious metals, acknowledged that the bank held short, or selling, positions in US futures but said it did so to hedge the prices of gold and silver in its London vaults. JPMorgan declined to comment.

The gold and silver investors were joined by others worried metals prices had been pushed too high, or at least distorted. The Copper and Brass Fabricators Council alleged investment funds were the "major driver" behind rising copper prices. Many industry analysts attribute the price levels to industrial demand in Asia.

A high-frequency trader who locates his computers near the servers of CME, the exchange operator that owns Comex, said that concentrated selling positions could destroy the US silver futures market.

Bart Chilton, another commissioner, sympathised with their concerns, saying the CFTC needed to "fast track" limits on metals.

The CFTC released data showing that about half the world's gold is traded in London, and a third on Comex. Comex absorbs about half the world's silver volume.

end.

From MineWeb: Lawrence Willliams:

CFTC HEARING

GATA's Murphy produces evidence suggesting specific instance of silver and gold manipulation at CFTC hearing

Testimony from GATA's Bill Murphy to the CFTC hearing in Washington could be embarrassing for some major investment banks.

Author: Lawrence Williamshttp://www.mineweb.co.za/mineweb/view/mi
neweb/en/page72068?oid=101525&sn=Detail&pid=1

from Bill Holter. the data used in his commentary is the data that I supplied to the commision)

Bill H:

To all; the long awaited CFTC hearing is over and now we'll see exactly what type of action if any they take to reign in the naked Gold and Silver shorts. I must say that Commissioner Bart Chilton seems to be a stand up guy and understands that selling (paper futures) a years worth of Silver production in a month will knock the price down. Now at least the fact that 2 (JP Morgan and HSBC) traders have a massive short position is on public record and connecting the dots in public has been done. If the CFTC does not take any action after today then may God help them when this Ponzi scheme unwinds. They can never ever say "we didn't know". I would love to know what sort of explanation will be spun for these short positions!

Out of curiosity I went to Kitco's home page to see if there were any articles up yet regarding the hearings. There were 5 already and you'll never guess the tone of each and every one of them. That's right! Position limits aren't necessary, no manipulation, over regulation will hurt the market and position limits will send trading overseas. Did they report on any hard numbers like how many paper ounces have been sold vs. real ounces held? Did they report any of the hard numbers offered from the July-Sept. 2008 timeframe? Of course not because "don't confuse me with the facts" seems to be the Kitco motto in this case because they themselves run "pooled" accounts that may, then again they MAY NOT have metal backing these pools. Add today's reporting by Kitco to past "metal snubs" and I think it's clear that this "metal dealer" doesn't like their own product! They sound like little pigs squealing because the truth hurts so much!

Most humorous of all was Jeffrey Christian's explanation for what happened back in 2008. He first said (this is by memory because the web cast replay is not up yet) that the massive shorts were put in place to "hedge" positions that had been sold. Huh? Sold? Hedge? Then Chairman Gary Gensler asked the obvious question how do you hedge a sale with another sale? Mr. Christian then said he misspoke, he meant that "leveraged paper products were being disgorged because of the liquidity crunch" and that "physical buyers" were storming in and buying physical "out of fear".

So.....I have a couple of questions here and maybe someone can help me with them. The public worldwide was buying physical metal like mad yet the price went down? (Reports of scarce physical supplies and shortages were everywhere at the time.) Did anyone on the CFTC panel hear that? HUH!? So.....your paper contracts can set a price 180 degrees off from the direction of physical supply and demand? Didn't the CFTC say that the number 1 priority is fair and unfettered price discovery? Are you with me here? Can someone please help me?

If you sell 10 years worth of global physical supply with paper contracts wouldn't the price go down? Of course it would, and it surely did! But now the COMEX will be facing another minuscule problem shortly. There will come the day when the COMEX price goes down but physical metal will not be available. The cabal will go home that night after Gold gets smashed for $40-50 and Silver $1-2 and crack open a bottle of champagne celebrating their "victory"! The only problem is that the contract will be going down not because of cabal selling but because the COMEX's being discredited! I can envision the day that COMEX metal's contracts crash yet physical gets bid up but no volume occurs! Everyone will be selling futures when it becomes apparent that the contracts will be paper settled.

Which reminds me, one of the panelists said something like "the COMEX can never default because they will just settle in paper". I don't know about you but if I bought a contract expecting to be delivered Gold and received paper instead, I would consider it a default. They used to say about the Dollar "it's as good as Gold". Why do you think it has never been said about Gold "it's as good as Dollars"? Because one IS money and the other USED TO BE a derivative on money, now Dollars are not even a derivative on anything except a system that over leveraged and running on empty!

Did anyone expect establishment personnel to tell us anything other than the system works fine? They are not even lying, it's the truth! Everything IS working fine from THEIR standpoint. I would also think everything was fine if my newspaper was delivered one day in advance continually and my bank gave me an unlimited over draw capacity to facilitate my trading! I really don't believe anything drastic will be done by the CFTC. Yes we will get position limits, exemptions will be tougher to get but the "loopholes" will be found as they always are. If the CFTC were to really decide to clean up these markets, THEY would end up being the scapegoats holding the bag for the "force majeur" that will surely take place. The publicity for the good guys and the truth was wonderful so don't get me wrong, I just can't see the CFTC pulling the pin and chucking a grenade at COMEX inventories. That, I believe will be Mother Nature's job! Have a nice weekend, Bill H.

end.

Here are some general comments from investors writing to GATA:

Bill, a quickie.
I watched every minute of the meetings. I wonder if you realize how important it was that arrogant Thomas LaSala of the CME Group devoted so much of his testimony as a frontal attack on GATA? (Somehow I think you do.)
Inwardly I howled when he called you a "charlatan." (smiling broadly. They are worried now.)
"First they ignore you. Then they laugh at you. Then they fight you. And then you win."
? Mohandas Karamchand Gandhi

and this one:

From Gene Arnsberg, a very good gold and silver commentator:

They are in the fight-you stage now, in spades Compadre. Loved the whistle blower response to Bart Chilton. Riveting.
My complements,
Gene Arensberg

From Jim Richter of the Richter report:

Bill,
I just wanted to write to you to thank you for going to testify before the CFTC. Like you, I have invested my future in the precious metals and the mining shares. Therefore, when the gold/silver cartel manipulates the markets, they are stealing from both of us.
Your organization was one of the resources which awakened me to the rampant manipulation which has been going on in ALL the markets, and not just on the COMEX or the LBMA. It was in part because of you that I began to write my newsletter back in 2007.
I watched your presentation on You Tube with great interest. Setting forth all that "GATA knows" in only five minutes is impossible. Given the time limits you had, I just wanted to say that I found some of the comments on You Tube to be particularly disgusting. In particular, one "gentleman" took you to task for having hurried through your presentation, and for not being a slick public speaker. I suppose that is the world in which we live these days. Style points are now more important to some people than substance! There may well be some other people who could have presented your information in a smoother manner than you did. I'm a trial attorney, and I know how to dish out the B.S., and I have seen a lot of other skillful B.S. artists do the same. However, there is NO ONE on the planet who is more capable of conveying a sense of righteous indignation about the corruption in the precious metals markets than you. KEEP FIGHTING!
I also wanted to say that the information which you obtained from Andrew Maguire is truly the bombshell many of us have been waiting for. It is the "Madoff Moment." Gensler and his toadies are now on public notice as to SPECIFIC FACTS. If they do nothing, and they probably will do nothing, they stand convicted of complicity. Only Bart Chilton seems to be a decent sort, but he is only one voice.
I think that the Maguire information is so important that I would like to cite it, chapter and verse, in the April issue of my newsletter, due to be posted on my website next week. Of course, I will give full attribution to you and GATA. I already have a permanent link to GATA on my site. Once again, I think that the information is so important that I want to join the others (like Zero Hedge) who have also tried to get this information out there. Please let me know if that's OK.
Once again, this is not about "style points." This is about truth, honest markets, and individual liberty. It's that important.
Your friend and supporter (whom you have never met),
Jim Richter
www.therichterreport.com

end.

Author Ron Lutka:

Hi Bill:
"Call to Arms"

Given the continuous suppression by the "suppressive few" (today's CFTC hearings farce) its time to broadcast the Andrew Maguire whistleblower news far and wide. We troops need to send emails of what you posted today to many hundreds or even thousands of domestic and foreign: media outlets, brokerage firm research departments, and hedge funds just like we did in the early days. Pamphleting out on the streets in financial districts is another action that proved fruitful in the past.

The suppressive few continue to suppress the truth therefore we need to 10X or 20X our promoting of the truth. Bill, its that simple. We need to inflict so much pain on the criminals that they will regret forever what they did today. Bill, I believe you should issue a metaphorical "Call to Arms".

The key is we must create a situation whereby the criminals feel more pain because of their suppressive activities of today than if they did not commit those suppressive activities. This is imperative.

The criminal action has gotten way out of hand, Bill. The criminals need to be restrained.
Regards,
Ron Lutka

from Andrew LeBlanc who is working for the Government as a program analysit for the EPA's Office of Financial Managment:

Hi Adrian,
Great meeting you today after the CFTC hearing! I was thrilled to have had lunch with you, Harvey, Jason, and Midas. It was just an amazing experience being able to talk with you guys in person. Actually, I'm still feeling pretty starstruck as I write this. This is the first time that I've been able to meet such All-Stars like yourself in person. During the past couple of years, I've been educating myself by reading as much as possible online.

Once I was initially exposed to some of these ideas, I had to keep studying them, and it ultimately led me to attend this hearing. It's very humbling because I realize how much there is to learn. My wife doesn't take much of an interest in financial affairs, and I can't seem to get any of my friends or family to pay attention. I don't even bother approaching co-workers. It's been a lonely road to travel so far, which is why it was such a liberating experience to meet you guys. So I really just want to express my gratitude.

And I'll just share some personal thoughts... For the past 3 years, I've been working for the U.S. government as a program analyst in EPA's Office of Financial Management. That's pretty ironic, given the fact that EPA's regulations are a hindrance to miners and that big government in general is a hindrance to free markets. But it was my first job out of college, and after a few promotions, I'm earning a comfortable wage as a GS-12 (paid entirely in fiat $USD naturally!). My wife and I have maintained a high savings rate and have deployed our savings to purchase several thousand ounces of the "poor man's metal." I consider myself fortunate to even have a job in this climate, given the massive unemployment that exists. But with all of the free-market material that I've been reading, I feel totally conflicted about my professional life. It's like I'm working for the wrong team, not to mention that my talents are largely going to waste. Frustrating.

Anyway, I'm extremely fortunate to have spent the day with you and the others. I hope that we have the opportunity to meet again soon. Please consider me as a devoted local contact who is always eager to help out.
Yours,
Andrew Le Blanc

from Dave Kranzler:

Great entertainment from the CFTC.

They, the CFTC silver market investigators that is, are clearly in a bind now. The emails just released are dynamite - if nothing else, scriptwriters will start to put stories around them, the film industry will grind into action, the embarrassment factor will become acute for anyone who is trying to ignore this from an official standpoint where they should be doing something, and the hole shot is that any electoral interest is going to be completely blindsided by this until there is some criminal action against the concert party which has clearly been having another great, great party at the expense of the poor idiot investors who thought that the futures markets AND ALL LINKED markets operate in a reasonably fair and transparent fashion.

One simple question: how can it be that even when put on notice of criminal activity by market participants clearly identified in the COT reports but also in the bank participation reports, there is no Eliot Spitzer keen to press home a serious career advantage? I should have expected that they would be queing up to subpoena Dimon and his cronies.
Dave

Here is regular contributor to the GATA forum,Nicholas from Lagos:

Hi Bill,
I stayed up & watched the full hearing last night & ended up more hopeful than I thought I would be. I loved the bombshell you dropped on the whistleblower - wow all their faces dropped & you could hear a pin drop.

As well as your defence I thought that Mark Epstein & Harvey Organ were brilliant.
Mark classically described the "Gorilla" in the room whilst Harvey described the size of the "Gorilla" through the statistics of the CFTC & BIS.

A couple of points that I think should have been raised:

If a commission is to be held on the subject then shouldn't the irregularities that stand out be studied & looked into further? I mean if you want to study & observe a market then you need to put opinions to one side & study the facts to gather your analysis.> I saw lots of opinions today but only a few stopped to mention the facts (specifically Harvey Organ).

ie if they want to stop manipulation then shouldn't they look as to where the Traders see manipulation occurring. Mark Epstein alluded to the "Gorilla" in the trading pits who dumps huge positions in milliseconds.

Harvey alludes to JPM having a huge overwhelming position.

To my mind these two contentions outline the sum of the problem.

Seeing as there was 20 odd people reporting to the commission I would like to have seen every one of them asked to talk about these two aspects.

I am sure that they are all aware of this phenomena in trading but it seemed to me that most of the speakers - representatives from big companies - only wanted to talk about keeping the system the same as it is rather than reviewing what is wrong with the current market.

One aspect I think needs to be asked of Jeffery Christian in his defence of claiming he understands the hedging requirements of banks is how does JPM explain this position in the marketplace.

Overall I got the impression from most of the speakers that they didn't want change or to ruffle feathers.
That they would rather let the markets continue as they are than change them.

My best guess on that is that they're all well suited to profiting from the current situation & are fearful that if changes come about then their positions & profitability will come into question.

I think most of the traders like the idea of JPM cornering the market - keeping it trading in ranges - keeping the volatility high.
That is a traders market waiting to be scalped. Hence their reluctance to let in any change. It is a market they know & understand & they would like it to stay that way.

That sounds to me a lot like the banks in the Global Financial Crisis.
Where even though it was their positions that caused the crisis that they don't want to change their "Modus Operandi" as it is so unregulated & profitable.

What they fail to recognise is that a fettered market is unfree & creates imbalances. One can see this in the chart below where JPM's position in the market has gone from controlling 30% of the market up to the current 80%
In other words they have gone from being the major trading bank to one now where their positions is "TOO BIG TOO FAIL".

And as the "Gorilla" in the market, when they dump 2000 contracts in milliseconds it has a profound & disturbing effect on the price & also players.

Here can be seen where JPM is taking control of market share in an ever rising derivatives market.

Also I would like to ask how is it that since 2000 we've seen global hedging fall from 3000 tonnes to 230 tonnes yet the derivative positions in the major Hedger Bank JPM have risen ever since.

Also what should be questioned is the "Gorilla" approach to certain trading days; Option Expiry, Gov't Report Releases etc where it's common practice to move the price to suit the Gorilla.

----------------

As you know I've been plotting the gold price on my website for the last decade.
The data I have is intraday 2 minute tick data for 24 hours a day - 5.5 days per week. I have the gold price history stored for analysis & would like to showcase these special anomaly days when gold is hit.

My intentions are to break this huge dataset down into monthly sets of daily data to showcase the US effect on the Price.

It would also be good to get some historical dates & times on Gov't Report releases so I can highlight the Guerrilla attacks.
ie which reports & what time of day are they released?
Perhaps you can help me with this later when you have some spare time.

Will keep you informed of this as I go.

Keep up the good work & don't let the bastards get you down.
All the best
Cheers Nick

from regular contributor Edward Ulysses Cates:

Good morning, Bill:
First.
THANKS! Especially for being a conduit for McGuire.
Your efforts are understood and appreciated
and that's why I continue to be a member of GATA.
Second.
I can't help but think Bart Chilton at the CFTC finds himself in the same position
as William K. Black did back in his FSLIC days. Both were highly unpopular
for trying to do the right thing within the system.
Black received a death threat on Keating's letterhead, and
McCain of the Keating Five is still a senator from Arizona to this day.
Not a pleasant thought.
Respectfully,
Edward Ulysses Cate

and Bill Murphy on the whole day's experience:

I am going to reserve more commentary until later, except to say the control over the press and government appears to be far worse than even I imagined.

Congrats to Harvey Organ and Adrian Douglas (in support of Harvey) who were SUPERB in their presentations to the CFTC.

BILL MURPHY
CHAIRMAN
GOLD ANTI-TRUST ACTION COMMITTEE

end.

And finally, the legendary JIM SINCLAIR on the CFTC hearings:

Jim Sinclair's Commentary

Bill Murphy of GATA speaks to the CFTC,. Fpr those of you who wish to see

just the whistleblower announcement go to www.jsmineset.com

and scroll down to the"whistleblower Speaks out.." section.

Jim Sinclair's Commentary

Rape, murder and pillage have been resident on CRIMEX even before I was a member. It has now become both an art and science as recently as yesterday.

When the Devils are in charge, virtue become a crime.

Whistleblower Speaks Out On J. P. Morgan's Market Manipulation – Reports Violations to the CFTC in the Silver Market 25 MARCH 2010

Do we have another Harry Markopolos here, describing in detail the manipulation of the silver markets by J.P. Morgan to the CFTC? How does this square with the testimony today from the CFTC Commissioners, who seem to indicate that the markets are functioning extremely well, and that investor can have full confidence in them?

I am led to understand that Mr. McGuire had offered to testify before the CFTC today, and that he was refused admittance. I do not know him, or the position he is in within the trading community. I cannot therefore assess his credibility or the validity of any evidence which he may present or possess. But I have the feeling that nothing will come of this.

Remember, there was no action on the Madoff scandal until AFTER his fraud collapsed, and the government was forced to acknowledge Markopolos' existence. He had been ignored and dismissed by the bureaucrats at the SEC for years because of Madoff's power and standing with the trading establishment. And of course by those who had an interest in hiding Madoff's scheme, if nothing else, to promote 'confidence' in the markets.

What seems particularly twisted about this is that JPM is the custodian of the largest silver ETF (SLV). Is anyone auditing that ETF, and watching any conflicts of interest and self-trading? Multiple counterparty claims on the same bullion?

If you ever wanted to see a good reason for the Volcker rule, this is it. These jokers are one of the US' largest banks, with trillions of dollars in unaudited derivatives exposure, and they seem to be engaging in trading practices like Enron did before it collapsed.

More…

For those brave souls that wish to watch the entire presentation which is over 5 hours long, here it is for you to see

in its entirety:

CFTC posts video of hearing on metals futures trading

Section:

4:10p ET Friday, March 26, 2010

Dear Friend of GATA and Gold (and Silver):

Video of all of yesterday's hearing of the U.S. Commodity Futures Trading Commisison on the metals futures markets has been posted at the CFTC's Internet site here:

http://www.capitolconnection.net/capcon/cftc/webcastarchive.htm

CFTC Commissioner Bart Chilton reports that the interruption of the live video feed of GATA Chairman Bill Murphy's testimony yesterday was traced to a problem with the outside vendor handling the broadcast. Judging from comments by GATA supporters who watched the hearing via the Internet, the interruption seems to have affected those using the Windows Media Player program but not the Real Player program. Access to the audio from the hearing via telephone conference call was never interrupted.

Thanks to our friend Robert Ian, Murphy's two statements to the hearing can be viewed separately at YouTube here:

http://www.youtube.com/watch?v=9wIMpe9SjfQ

http://www.youtube.com/watch?v=e9bU0r6JP4s

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

end.

Other more mundane news:

JPMorgan and friends get hit again with criminal behaviour:

PMorgan, Lehman, UBS Named as Conspirators in Muni Bid-Rigging
March 26, 2010, 12:16 AM EDT
By William Selway and Martin Z. Braun

March 26 (Bloomberg) -- JPMorgan Chase & Co., Lehman Brothers Holdings Inc. and UBS AG were among more than a dozen Wall Street firms involved in a conspiracy to pay below-market interest rates to U.S. state and local governments on investments, according to documents filed in a U.S. Justice Department criminal antitrust case.

< A government list of previously unidentified "co- conspirators" contains more than two dozen bankers at firms also including Bank of America Corp., Bear Stearns Cos., Societe Generale, two of General Electric Co.'s financial businesses and Salomon Smith Barney, the former unit of Citigroup Inc., according to documents filed in U.S. District Court in Manhattan on March 24. The papers were filed by attorneys for a former employee of CDR Financial Products Inc., an advisory firm indicted in October. The attorneys, as part of their legal filing, identified the roster as being provided by the government. The document is labeled "list of co-conspirators."

None of the firms or individuals named on the list has been charged with wrongdoing. The court records mark the first time these companies have been identified as co-conspirators. They provide the broadest look yet at alleged collusion in the $2.8 trillion municipal securities market that the government says delivered profits to Wall Street at taxpayers' expense.

'Sufficient Evidence'

"If the government is saying they are co-conspirators, the government believes they have sufficient evidence that they can show they were part of the conspiracy," said Richard Donovan, a partner at New York-based law firm Kelley Drye & Warren LLP and co-chair of its antitrust practice. Donovan isn't involved in the case.

The government's case centers on investments known as guaranteed investment contracts that cities, states and school districts buy with the money they receive through municipal bond sales. Some $400 billion of municipal bonds are issued each year, and localities use the contracts to earn a return on some of the money until they need it for construction or other projects.

The Internal Revenue Service sometimes collects earnings on those investments and requires that they be awarded by competitive bidding to ensure that governments receive a fair return. The government charges that CDR ran sham auctions that allowed the banks to pay below-market interest rates to local governments.

CDR, a Los Angeles-based local-government adviser, was indicted in October along with David Rubin, Zevi Wolmark and Evan Zarefsky, three current or former executives. The company and the three men have denied wrongdoing. Since last month, three former CDR employees who weren't charged in the initial indictment have pleaded guilty and agreed to cooperate with the Justice Department.

Company Officials

Brian Marchiony, a spokesman for JPMorgan in New York; Doug Morris, a spokesman for UBS in New York; and Danielle Romero- Apsilos, a spokeswoman for Citigroup in New York, all declined to comment. A Societe Generale spokesman, Jim Galvin; Lehman spokeswoman Kimberly MacLeod, and GE Capital spokesman Ned Reynolds in Stamford, Connecticut, also declined to comment. Bank of America spokeswoman Shirley Norton in San Francisco declined to comment. Bear Stearns was bought by JPMorgan in 2008, the same year Lehman Brothers collapsed.

Laura Sweeney, a Justice Department spokeswoman in Washington, declined to comment.

Lawyers' Filing

In a court filing yesterday, defense lawyers said they "inadvertently" included the names of individual and company co-conspirators in a motion asking the court to compel the government to provide more specific evidence of the alleged misconduct. They asked the court to strike the entire exhibit in which the list appears. U.S. District Judge Victor Marrero granted the request.

The government's probe became public in 2006 when federal investigators raided CDR and two competitors and issued subpoenas to more than a dozen firms. The "co-conspirators" on the list released in court this week also included Wachovia Corp. Lindsay Adrian, a spokeswoman for San Francisco-based Wells Fargo & Co., which acquired Wachovia, had no immediate comment.

The indictments released in October didn't identify any of the sellers of the investment contracts involved in the alleged conspiracy. They were identified only as Provider A and Provider B. They paid kickbacks to CDR after winning investment deals brokered by the firm, according to the indictments.

The firms did this by paying sham fees tied to financial transactions entered into with other companies, prosecutors said. Kickbacks were paid from 2001 to 2005, ranging from $4,500 to $475,000 each, according to the Justice Department.

Investment Contracts

According to the list contained in the court filing this week, the investment contracts involved were created by units of GE and divisions of Financial Security Assurance Holdings Ltd., a bond insurer formerly part of Brussels-based lender Dexia SA.

The kickbacks were paid out of fees generated by transactions entered into with two financial institutions that weren't identified in the October court filing. The March 24 list filed by the defense named the two firms as UBS and Royal Bank of Canada.

Dexia completed the sale of FSA's bond-insurance business in July to Assured Guaranty Ltd. of Hamilton, Bermuda, while retaining its outstanding investment contracts. FSA, based in New York, was the biggest insurer of U.S. municipal bonds in 2007 and 2008.

Telephone messages left at Dexia's media-relations offices in Paris and Brussels after business hours weren't immediately returned.

"We have no comment," said Betsy Castenir, a spokeswoman for Assured Guaranty in New York, in an e-mail response. "Dexia has responsibility for the liabilities of the Financial Products business."

Gillian McArdle, a spokeswoman for Royal Bank of Canada in New York, didn't return a phone message seeking comment.

The case is U.S. v. Rubin/Chambers, Dunhill Insurance Services Inc., 09-CR-01058, U.S. District Court, Southern District of New York (Manhattan).
--Editors: Mark Tannenbaum, William Glasgall

-END-

This next piece is very interesting. I know that Eric Sprott still needs to fill his order for 13 tonnes of gold. He has asked the IMF to sell its gold and they refused.

I wonder why?

Sprott tries to buy IMF gold but is refused!!

posted on Mar 26, 10 02:26PMhttp://www.zerohedge.com/article/imf-now-rejecting-prospective-buyers-its-gold-stashhttp://www.zerohedge.com/article/imf-now-rejecting-prospective-buyers-its-gold-stashIMF Is Now Rejecting Prospective Buyers For Its Gold Stash

In an exclusive report, Kitco has just released yet another stunner in the world of precious metals. It turns out that Eric Sprott has attempted to purchase gold from the IMF, according to information provided to Kitco by Frank Holmes, CEO of US Global Investors. "I just spoke with Eric Sprott, who bid to buy [the IMF's remaining gold on the block] and they refuse to sell it." As Kitco points out, "the IMF might be holding out for a bigger buyer or a central bank or for higher prices. But Holmes argues the IMF's rejection of Sprott's bid means markets are being manipulated." Back to Holmes: "I think there is a lot of manipulation done by governments around the world in the currency markets which affect the bond markets so to me it's just normal course." Holmes concludes "with an election year there may be a gold rally that could be two standard deviations, or $300 dollars, to the upside. So you could see gold run to $1300 to $1500 quite easily." This all is occurring as ever more pundits finally realize that as fiats are discredited across the world, the only safe, non-dilutable resource is gold.-END-

It looks like the EU is going to help in the bailout of Greece. This is going to be extremely bullish for gold as the whole world goes through quantitative easing.

The whole world is going to be bailed out:

Eurozone agrees to Greek rescue deal By Quentin Peel, Ben Hall and Joshua Chaffin in Brussels Published: March 25 2010 11:03 | Last updated: March 26 2010 00:07

Eurozone leaders on Thursday night agreed a rescue package for Greece including assistance from the International Monetary Fund as well as bilateral loans from fellow euro-member states.

"We hope that it will reassure all the holders of Greek bonds that the eurozone will never let Greece fail," said Herman Van Rompuy, president of the European Council. "If there were any danger, the other members of the eurozone would intervene."

The agreement followed a breakthrough earlier in the day between France and Germany on the principles of a rescue.

Under the accord reached between President Nicolas Sarkozy and Chancellor Angela Merkel, Athens would, in the event of "very serious difficulties", receive co-ordinated bilateral loans from its eurozone partners as well as IMF assistance, which France had previously resisted.

Mr Van Rompuy said it would be a joint mechanism between eurozone members states and the IMF. Mr Sarkozy said the proportion of funding would be one-third IMF and two-thirds eurozone.

More…

How about this: banks are going to forgive some of their principal to help homeowners: (again bullish for gold and bad for banks)

U.S. Plans Big Expansion in Effort to Aid Homeowners By DAVID STREITFELD

The Obama administration on Friday will announce broad new initiatives to help troubled homeowners, potentially refinancing several million of them into fresh government-backed mortgages with lower payments.

Another element of the new program is meant to temporarily reduce the payments of borrowers who are unemployed and seeking a job. Additionally, the government will encourage lenders to write down the value of loans held by borrowers in modification programs.

The escalation in aid comes as the administration is under rising pressure from Congress to resolve the foreclosure crisis, which is straining the economy and putting millions of Americans at risk of losing their homes. But the new initiatives could well spur protests among those who have kept up their payments and are not in trouble.

The administration's earlier efforts to stem foreclosures have largely been directed at borrowers who were experiencing financial hardship. But the biggest new initiative, which is also likely to be the most controversial, will involve the government, through the Federal Housing Administration, refinancing loans for borrowers who simply owe more than their houses are worth.

About 11 million households, or a fifth of those with mortgages, are in this position, known as being underwater. Some of these borrowers refinanced their houses during the boom and took cash out, leaving them vulnerable when prices declined. Others simply had the misfortune to buy at the peak.

More…

Dubai gets a lifeline.. More Q.E.

Dubai World in line for $9.5bn injection By Simeon Kerr in Dubai and Andrew England and Robin Wigglesworth in Abu Dhabi Published: March 25 2010 08:26 | Last updated: March 25 2010 22:25

Dubai unveiled a long awaited debt-restructuring plan yesterday, pledging to inject $9.5bn into the troubled conglomerate Dubai World, most of which will go to its developer, Nakheel .

The state support includes $3.8bn from the Dubai government over the next three years and a further $5.7bn from a $10bn loan by neighbouring Abu Dhabi to Dubai that was earmarked for Dubai World.

It is hoped that the stimulus effect of the new money to the wider economy will blow away the cloud surrounding Dubai World. Dubai's reputation as the Gulf's financial and commercial hub has taken a battering since it surprised financial markets in November by asking to restructure $26bn in debts. Yesterday's plan was broadly welcomed as domestic stock markets rose and the cost of insuring against a default fell.

"There's no such thing as a magic wand, but this should help a lot," said Simon Cooper, regional chief executive of HSBC, a creditor to Dubai World that sits on the co-ordinating committee of banks negotiating with the conglomerate.

"This lets people look forward, not backward. Dubai World's problems have caused some paralysis and once it's behind us we will see a pick-up."

More…

I think I better stop as my 5 minutes has run out so I must stop reporting. (the red light has just turned on)

I hope you all have a great weekend
see you on Monday
Harvey.

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