News & Analysis
New Wall Street Hearings Redux: Now It's JP Morgan's Turn?
Is JPM Metals "Whistleblower" Letter A Complete Fraud Or Just A Total Mockery? ... Today, the metals space is abuzz with a CFTC "comment letter" posted on its website by an alleged "current JPM employee." There is only one problem - this letter is either a complete fraud or simply a total mockery, as it provides absolutely nothing new, and merely regurgitates existing manipulation claims already out in the public domain, and backed by precisely zero evidence. How about attaching a signed trade confirm, or a daily internal P&L report, or even a blotter entry? No? Because they don't exist? Needless to say, anyone can submit such an alleged insider letter, and since there is no name associated to it, we would advise everyone to merely enjoy this a prank attempt. Unfortunately, what more such repeated faux "whistleblower letters", which are likely forthcoming, from other "current JPM employees" will do is simply dilute the effect of any real such disclosure that may come in the future. For that purpose, we strongly caution anyone who considers submitting such disinformation attempts from doing so as it will merely impair and discourage any just intent of validated and justified whistleblowing, either at JPM or elsewhere. − ZeroHedge
Dominant Social Theme: Look, Greg Smith blew the whistle on Goldman Sachs. Bankers are resigning all over the place, and this guy wants to blow the whistle on the metals markets. Let him do it!
Free-Market Analysis: ZeroHedge is carrying an analysis (see excerpt above) of this weird open letter that has been posted on the CFTC website. The ZeroHedge mavens castigate the letter writer for likely being a phony.
In other words, the horrible allegations may be correct – as they have been presented many times before in other places and quite a bit more convincingly – but the "whistleblower" himself seems made up. The letter is posted at the end of this article, courtesy of ZeroHedge.
Let's play devil's advocate for a moment and assume the letter is a phony. Why would it have been placed where it is? In our view – and we have written a number of articles on this now – it could be, possibly, part of a larger power elite dominant social theme.
We've hypothesized that these elites – the few families that control the world's trillions via central banking – are after the last bastion of independent wealth – Wall Street.
Wall Street's capital-raising mechanism, what's left of it, was once superior to any other in the world. It came out of a free republic and even if parts of Wall Street were ALWAYS manipulated, it has remained a way for even a quasi-average schlub to make millions if he strikes at the right place and the right time.
The idea that the average person can make a million dollars via financings of the right sort drives the elites crazy. Independent wealth is an incredible danger to them, or so they believe. It allows for the funding of independent messaging.
And so part of the war the elites have waged over the past century has been against any kind of independent wealth gathering. This of course explains the war against gold and silver. The idea that people can dig wealth out of the ground is no more palatable than the idea that average people can make big money on Wall Street.
The elites have been after capital raising mechanisms for a long time, in our view. They mowed down Wall Street in the 1930s with the phony Pecora hearings, and, as we have been writing for the past year, they are apparently gearing up to do it again. This time they likely will leave no stone unturned.
No ... by the time the elites are finished with Wall Street this time round, there will be virtually no way to raise a dime if you are not properly connected either to Washington DC or the City of London. (Or maybe the Vatican or Tel Aviv.)
And for all you skeptics: Can this be a coincidence? We just finished reporting on Greg Smith's expose of Goldman Sachs and now this? This "open letter" to the CFTC? What a ... coincidence.
It smacks of a deliberate campaign, yes? We cover the memes of the elites – the fear based promotions that frighten middle classes into giving up power and wealth to globalist institutions, and we think we "get it."
Do you understand as well? It's not so complicated. You see where this is headed? The gloves are off. One could certainly make the argument that the power elite that intends to run the world has launched a flat-out attack on what is left of Wall Street's capital raising functions. See additional articles on this theme here: Is Goldman Resignation Part of an Elite Plot? and The Real Reason Bloomberg Sued to Open Up Fed Records?
We have no sympathy for Wall Street. We think it is an incredibly corrupt place and Goldman Sachs is even more corrupt if that is possible. But "regulating" Wall Street corruption is NOT what any of this likely DELIBERATE campaign is about.
This is about finishing off private markets in the USA. It's about ensuring that mercantilism – business by a privileged few via backhand government favors – is the rule of the day. We've seen this pattern developing for about two years now. But some patterns are more obvious than others. This one seems increasingly obvious ...
It's the reason we're attracted to free-market economics. We've always felt that something ... big was being prepared, certainly since the 2008 economic takedown. Something that was going to sink what's left of private enterprise in the US.
And now, in our view, the pattern is becoming increasingly clear. The greenbackers, the social-creditors, all the government-oriented paper money solutions ... the attacks on free-market thinking and free-market economics ... they are part and parcel (knowingly or not) of the same meme, in our view.
Government is slated to take over ... ALL of it. The US government, in particular. Isn't this becoming obvious? The alternative media can jump all over the KONY promotion, but why the larger silence? There are critics who seem to be playing directly into this meme, willingly or not, and it's too bad, in our view.
New Pecora Hearings are apparently being prepared in the bowels of Congress as we write. The announcement of such could be seen as a further part of the promotion. They may be presented as an antidote to the outrage, perhaps, of such people as Mr. Smith – and this anonymous letter writer.
And take a closer look at the letter itself (see below). What's interesting about THIS letter and this writer, is that the warmed-over accusations are aimed at boosting the entirely corrupt CFTC – and beginning perhaps an agitation for MORE REGULATION of the metals markets. (Better buy now?)
The elites are nothing if not repetitive. They basically ruined a somewhat free-market in the US and the West back in the 1930s with their monopoly fiat inflation and subsequent false flag Pecora regulations. And now they may be aiming to administer the coup de gras.
Of course, we'd like to think it may be different this time. This time, thanks to what we call the Internet Reformation, people may understand how they are being manipulated.
They may, perhaps, begin to see that their painfully whipped-up hatred of modern private sector financing (which isn't private at all but mercantilistic) is nothing perhaps but a big manipulation. These people, among the brightest and best of us, can withdraw their support for this charade.
They may notice that the banking resignations that have been much discussed are likely the result of mid-level bankers realizing they are about to be hung out to dry by the handful of top elites that really matter. This is what they ALWAYS do. They use the lower-downs as scapegoats and to divert attention.
They may notice that JP Morgan and its depredations are likely a good deal more meaningful even than Goldman Sachs and that, at the lower level, ethnicity seems to have little to do with it. (It's a crime family, baby, with a particular group at the top and plenty of other enablers below. And the criminals, the mid-levels ones, of all ethnicities and religions, are headed for the exits.)
They may even notice that Illuminism, numerology and Masonry are at this point likely nothing but a further diversion to divert people from the REALITY of what's taken place: a "criminal syndicate" (as Eustace Mullins once put it) has muscled its way onto the throne of the world and is extracting their tribute with or without acquiesence.
But all good things come to an end. Perhaps those at the very top have decided the proverbial jig is up. They are doing what they have done before. They are reversing course. Having used the so-called private market to create financial chaos, they shall now employ the boot of government to further cement control and push the globalist agenda. Will this tried-and-true formula, if that's what it is, work once more, and it has so many times before?
What if the infinitely corrupt US Congress held a hearing and no one came? What if the vicious penitentiary-industrialist complex expected the people's support in carting Goldman Sachs crooks off to prison and nobody in the alternative media fully approved of it – because they saw it was merely a transparent ruse intended to protect the people who are REALLY in power?
What if ... those in the 'Net blogosphere wrote articles saying "Of COURSE we know that Goldman Sachs is crooked. It's bought and paid for by the same elites that run the world's central banks, the ones that want to create a New World Order and are willing to murder billions to do so"?
What if ... these same intrepid souls wrote stories calling out for REAL justice: "Sure, take out the bankers ... but for once, go to the TOP of the pyramid and formally expose the central banking dynasties and their enablers and associates."
What if ... these brave souls wrote, "In fact, we WON'T endorse your phony planned hearings that are merely intended to reduce to ash and rubble what is left of the ability of American entrepreneurs to self-finance and invest independently. We WON'T provide our approbation. We WITHDRAW our consent. Congressional hearings are merely a farce, a kind of low drama intended to generate sympathy for an entity that has long ago forfeited it. These Wall Street hearings are nothing but a bait-and-switch designed to distract our attention!"
"Remove the laws providing the Federal Reserve with monopoly fiat power," they might write. "Remove the phony laws regulating who can raise capital (that merely benefit the approved wealthiest) and how. Remove the phony regulatory agencies – the SEC and CFTC that have proven entirely ineffective and are merely a hoax to further empower the powerful. Remove all the painfully constructed and entirely ineffective regulation. Let competition and the Invisible Hand deconstruct and wipe clean this mercantilist nightmare! Let people live freely and risk what they wish as they did when the US was a great country, a vital nation:
"HOG Butcher for the World,
Tool Maker, Stacker of Wheat,
Player with Railroads and the Nation's Freight Handler;
Stormy, husky, brawling ..."
Conclusion: Perhaps we are dreaming, perhaps not. Perhaps we are entirely wrong in this article and there is no manipulative power elite (or perhaps there is a "White Dragon Society" that has given bankers an ultimatum of March 31). Perhaps Wall Street DOES need regulating – more of what has gone before – and these back-to-back exposes we've just witnessed are merely "coincidence." Perhaps they are the statements of truly concerned and saddened individuals. Perhaps ... Do YOU believe it?
Dear CFTC Staff,
Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk.
This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. 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 longer 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 is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship.
Does anyone in today's market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. 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. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.
I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He 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. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.
On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. 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.
There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke's speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.
As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.
It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. 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
Posted by Abu Aardvark on 03/16/12 02:01 PM
This just in:
'CFTC Pulls "JPM Whistleblower" Letter'
Click to view link
Posted by Don from the Republic of Lakotah on 03/16/12 01:06 PM
Let's play the devil's advocate and assume that this letter comes from a genuine Morgan-Chase insider who still believes in the rule of law. Can we place a valuation on Morgan's suppression of the PM complex? Using that valuation as a starting point, can we estimate the amount of a monetary sanction? What is 10% to 30% of said monetary sanction?
Background: Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides that the Commission shall pay awards to eligible whistleblowers who voluntarily provides the SEC with original information that leads to a successful enforcement action yielding monetary sanctions of over $1 million. The award amount is required to be between 10 percent and 30 percent of the total monetary sanctions collected in the Commission's action or any related action such as in a criminal case."
Click to view link
Posted by dave jr on 03/16/12 12:55 PM
I agree John.
And, I wouldn't be surprised if the big banking houses are planning to take a dive, a rope-a-dope. They can claim to be the hurt parties, but they aren't. They understand that value lay in the resources of the earth, not fiat currencies. Corporations can be sacrificed while the principles hide the real assets.
I also wouldn't be surprised if under a "banking emergency", the operations of the federal reserve had to be taken over for better oversight, to the delight of the social credit advocates. The manipulators will have moved indoors, from private to quasi-public to public. Mission accomplished inside of 100 years, the sweet marriage of money backed by "legitimate" guns, instead of petro-dollars backed by faux military operations.
And, I wouldn't be surprised that to maintain a shred of credibility, a quasi-gold standard may be offered. Not a redeemable currency, just notes defined by gold. This would be the worse of all worlds; a non-redeemable, value by edict, currency that can be printed endlessly for the public good.
Isn't it interesting that a one ounce US Gold Eagle still has a face value of $50?
Click to view link
Posted by Hoss on 03/16/12 09:37 AM
The nature of the diversion doesn't always inform the direction from which the attack will be launched.
Whether all these things coming together are partially true or just noise, it looks to me like something big is brewing.
To me the most ominous of all is the point I raised yesterday; they can make the numbers say whatever the hell they want them to say. For years the hopelessly insolvent banking system has been lumbering along in zombie mode while we are assured that everything is fine.
Don't worry, be happy.
Now, following the exodus of rats, we are told that major banks are failing the fraudulent 'stress test' (which they passed *before* they got all that free money!).
At the time we speculated that they were making their final grab at the remnants of our equity before allowing the whole thing to finally come crashing down.
Perhaps we were right. Perhaps they have milked the cow dry, perhaps the system has become unsustainable (wasn't it already?), and now that they have prepared their featherbeds behind armored walls, it is time to bring the thing down in controlled fashion, rather than let events transpire without whatever guidance they can exert.
In the U.S. anyone that hasn't 'paid off' their mortgages is already essentially renting their homes from the Federal Government. (And even if you 'own' it, you rent it anyway.) The transfer of real property from producers to the banking/governing class is all but complete.
Paper money is a con game, and once the mark loses confidence the game is over. We have known for several years that the paper losses are approximately two to three orders of magnitude too large to print their way out of without having everyone lose confidence in the toilet-paper currency. This has not changed.
So if the inevitable is going to happen, and one knows it is coming, one could naturally be expected to attempt to exercise whatever options are available to affect the outcome in as favorable a direction as possible. Even if all one can do is to put a bucket nearby when feeling nauseous.
Perhaps the Friends Of Paper Money are painting a swan black for us.
I simply refuse to believe that this 'stress test' thing is anything other than an attempt to condition us for what comes next. (A black swan event is something few see coming, and in retrospect everyone claims to have seen it coming.) 5% reserves are a ridiculous concept in the first place; if a tiny bit of doubt arises a bank run ensues, people think their deposits are 'their property', but the deposits don't exist. The internet reformation has been stirring up exactly this doubt in the mark. If the internet information succeeds at stampeding the herd, the whole game is up, perhaps within hours if not days from the time when panic begins to break out.
I hope I'm wrong.
If I'm not wrong, then the article referenced in this piece would serve the purpose of conditioning people to not be too surprised to discover that their Paper Gold and Paper Silver are non-existent.
It's not too late to get physical. Who knows what a New Dollar will buy when it comes out?
Posted by Jonathan on 03/16/12 08:18 AM
Great piece DB.
Yes, I believe in a power elite who are desperate now. No, I don't believe in the fake Ben Fulford's so-called 'White Dragon Society' and their ultimatem to banks (and all his other BS), nor do I believe in the authenticity of this and the many other whistleblowers to follow.
PS. Ben Fulford's character is played by Lawrence J Fuller, an actor who is part of the Independent Filmmakers Association of Southern Arizona (IFASA).
Click to view link
Posted by BronSuchecki on 03/15/12 09:41 PM
I think you've went too far on this interpretation and I favour the take of Click to view link who see it as another variant on previous social media manipulation marketing strategies undertaken by precious metal business(es), which they have been tracking for some time.
Posted by Don from the Republic of Lakotah on 03/15/12 08:19 PM
Alternative media possibly pulls a mass media "fake but accurate" bit.
"Goldman Sachs is even more corrupt if that is possible."
At least GS calls its rubes "muppets" instead of "mofos."
Posted by Bluebird on 03/15/12 08:15 PM
This is one of the best and perhaps THE most important analysis the Daily Bell has ever done, IMO. Great job. I hope it goes viral!
Reply from The Daily Bell
Posted by samson on 03/15/12 06:43 PM
DB: Contrary to the view this is just a smoke screen, believe it is being presented as farcial info,a satire to bring even more redicule of any who would be stupid enough to believe it has any possible truth.
The reality is in the contents of the epistle. Hierarchy of GS, JPM, BOA, CITI, & all other monolithic enterprises are obviously in one of the top Circles of intrigue.
The are actively promoting the sale of Gold worldwide to ordinaries. At their precise timing of control they will confiscate Gold & have high penalties for any who would seek to retain some, maybe even concentration camps or death sentence depending on the hord discovered. Depends on if their national police forces & mercenary organs have been developed strong enough to fight the local militias. Their fiat barter will rein supreme. Blood will flow.
Reply from The Daily Bell
A large regulatory event would surely have a negative economic effect ...