Archive for the ‘Gary Gensler’ Category

‘Angry Bart Takes His Parting Shot’

Posted by on December 24th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, Goldman Sachs, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!


In early November, Bart Chilton announced that his 6 1/2-year tenure as a CFTC commissioner would end at the end of this year.  As the only commissioner who publicly expressed concern about gold and silver market manipulation heads for the exits, Bloomberg columnist William Cohan writes that “Chilton leaves behind a sobering message: As we long suspected, Wall Street continues to use every trick in its playbook to do whatever it can to eviscerate numerous post-financial-crisis rules. The arsenal includes high-powered lobbyists who outnumber lawmakers 10-to-1; $1,000-an-hour letter-writing lawyers who gain strength from negotiating over arcana; and the occasional hoodwinking of a president whose knowledge of the ways of finance are close to nil.” … Read More >>>

Before President Obama announced last week that he’s nominating Wall Street securities attorney Sharon Bowen to replace Chilton, the New Republic reported that Bowen “has little background in derivatives, commodities or agricultural markets—the core subjects of CFTC regulation—and no track record for reform.”

See also:

NY Times:  Federal Reserve grants JPMorgan right to expand its reach in electricity

Ted Butler:  JPMorgan and others used taper announcement to manipulate metals’ prices lower

Winter Actionables:  JPMorgan thought to be procuring gold on behalf of China

Saudi Gazette:  Drop in gold prices fuels buying frenzy

Times of India/ReutersSmugglers smile as Indian emigres can bring 1 kilo of gold into country legally

Zero Hedge:  A year later, Bundesbank has repatriated only 37 tons of gold (of 700 total)

GoldSeek/MarketWatchGold and silver gain in pre-Christmas trade; Gold pushes back above $1,200

Gold Scents/Greedometer:  Earnings season could bring the stock bear out of hibernation; Margin debt hits yet another new all-time high


Obama Nominates New CFTC Head

Posted by on November 12th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, JPMorgan, Short Sellers, Silver, U.S. Congress, Uncategorized, Wall Street | Be the first to comment!


President Obama announced on Tuesday that he’s nominating Timothy Massad to replace CFTC Chairman Gary Gensler, whose term ends in January. Massad currently heads the Treasury Department’s Office of Financial Stability (OFS), which oversees implementation of the Troubled Asset Relief Program (TARP).  The nomination follows last week’s announcement by commissioner Bart Chilton that he’s resigning at the end of this year.

Former Sen. Ted Kaufman, an outspoken critic of the Obama Administration’s handling of the financial crisis, told Politico that “One of my concerns when Gensler said he was leaving is that his replacement would be someone like Tim Massad, who I think will not make sure we live up to the promises of Dodd-Frank with regard to the fact that derivatives will be transparent and that they’ll be regulated.  Massad is much more in the Jacob Lew-Tim Geithner  philosophy of regulation of the banks from everything I saw in the Senate and as chair of the congressional oversight of the TARP.”


Hair Today, Gone Tomorrow

Posted by on November 6th 2013 in Bart Chilton, CFTC, Gary Gensler, GATA, Gold, Goldman Sachs, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

ChiltonCallsItQuitsCFTC Commissioner Bart Chilton announced that he’s leaving the agency at the end of the year.  Or, GATA’s Chris Powell puts it, in an appreciation of Chilton’s efforts to address allegations of manipulation in the gold and silver markets, “Financial interests finally get rid of CFTC’s Chilton.”

“Chilton’s five-year term on the CFTC expired in April and he had said this year that he would like to be reappointed,” writes Powell.  “His announcement today contradicting himself suggests that he has been told that President Obama would not be renominating him, which should be no surprise, given the enormous trouble Chilton has caused for the powerful financial interests that control the U.S. government….His departure from the CFTC will be a great loss….Read more >>>

See also:

PoliticoMaverick CFTC member Bart Chilton to exit

Zero Hedge:  Bart Chilton jumps CFTC ship

Reuters:  New commissioners open CFTC to change

MarketWatch:  In announcing departure, CFTC’s Chilton references Etta James’ “At Last

Ted Butler: Why the ‘Perfect Silver Manipulation’ Will End

Posted by on October 19th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!


Ted Butler’s latest explanation of the ins and outs of JPMorgan’s “perfect silver manipulation,” and how it differs from the bank’s London Whale case, is introduced as “a must read for precious metals enthusiasts, but also for professional and individual investors because the ongoing manipulation must come to an end resulting in much higher prices.”

And Mineweb‘s Lawrence Williams looks at “a very strange series of gold trades on the futures markets” that has been occurring almost daily this month.  He describes it as “entities trading gold they do not have in a manner designed primarily to trigger stop loss sales by other gold holders and thus drive the prices downwards – or, on occasion, when the trades are buys, rather than sells, drive the overall markets upwards.”  Williams’ article is based on this analysis by Reuters’ reporter Frank Tang.

Indian Imports Seen Boosting Silver Vis-A-Vis Gold

Posted by on October 16th 2013 in Bart Chilton, CFTC, China, Federal Reserve, Gary Gensler, General Economy, Gold, JPMorgan, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

Gold:SilverRatioIndia“The silver price has been holding up remarkably well despite serious weakness in the gold price,” observes Mineweb‘s Lawrence Williams, “which is a bit of an unusual occurrence given that, historically, silver tends to outperform gold on the upside and often dramatically underperform gold when the latter’s price falls.”  He attributes this primarily to India’s record silver imports:  “What this seems to have led to is that the gold/silver ratio [currently at about 60] has not risen to the extent it has done in other recent gold downturns, and this suggests further that if, and when, gold eventually turns around, the silver price may also outperform perhaps more strongly than a prior rise in the gold price would have brought on.”  He doubts that “silver will ever return to its so-called historical ratio with gold of 16, but a return to a gold/silver ratio of 50 in a gold recovery scenario might not be unreasonable.”

News & Views

MarketWatch/Washington Post/WSJ:  Gold futures end near one-week high on Senate deal – add 0.7% as silver gains 0.8%; Shutdown, debt ceiling updates

Reuters:  U.S. gold coin sales surge in October on price drop, Washington impasse

GoldMoney/Sprott GroupValuing gold; Is gold still a safe haven?

Mineweb:  Forget the short term – gold is for the long run

SilverSeek:  Silver – 4 cycles in 12 years; How will you sell your silver?

GoldCore/Boston Globe:  Gold surged 17% in 15 trading days after last debt ceiling extension In 201; Jeff Jacoby – The problem is the debt, not the debt ceiling

Axel Merk/Ron Paul:  Yellen to the rescue?; New Fed boss same as the old boss

Hard Assets Investor:  Gold bulls should hope for Fed tapering; Why Washington dysfunction is bearish for gold  Jim Rogers: U.S. is exceptional…it’s the largest debtor nation in the world; Watch what China does with U.S. debt, not what it says

Dollar Collapse/SGT Report:   China enjoying gold clearance sale;  China, gold and the new world reserve currency

Mining Weekly/Cornell Chronicle:  Mintek – Prospects perking up for industrial use of gold; Gold-plated nano-bits find, destroy cancer cells

BullionVault/CNN Money: Glass-Steagall? Banking strikes gold on Columbus Day; JPMorgan to pay fresh $100M London Whale fine

GoldCore:  Gold price suppression theory mainstream after single $650 million sell trade

Jesse’s Café Américain/Bloomberg:  CFTC’s Bart Chilton takes a bow for role in JPMorgan fine/Article & video


An Interloper in the House of Morgan

Posted by on October 5th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, JPMorgan, Media, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

Just days after precious metals’ scourge JPMorgan dodged a silver bullet when the CFTC dropped its five-year investigation into silver market manipulation, Salon‘ political writer Alex Pareene caused quite a stir when he confronted JPMorgan’s CNBC defenders over the bank’s multitude of legal issues. Pareene said that JPMorgan, which he called “shady” and “corrupt,” deserved a massive fine related to mortgages, and that CEO Jamie Dimon should be fired.

“I don’t know which producer at CNBC had the genius idea of asking Alex Pareene on to discuss Jamie Dimon with Dimon’s biggest cheerleaders,” wrote popular Reuters‘ blogger Felix Salmon, “but the result was truly great television.” Salmon further described it as “a glorious exercise in watching CNBC anchors simply implode in disbelief when faced with the idea that JPMorgan in general, and Jamie Dimon in particular, might be anything other than a glorious icon of capitalist success. In the world of CNBC, the stock chart tells you everything you need to know, while the New York Times is a highly untrustworthy organ of dissent and disinformation.”

Following his appearance, Pareene was very self-critical in writing about “How I Botched it on CNBC.”  Matt Taibbi also weighed in on Pareene’s encounter with CNBC‘s “presstitutes.”

Metals Rebound; CFTC Not Reporting for Business

Posted by on October 2nd 2013 in Bart Chilton, CFTC, China, Federal Reserve, Gary Gensler, General Economy, Gold, JPMorgan, Media, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

Following Tuesday’s gold & silver headscratcher, Zero Hedge, in a Wednesday post, found it “Odd that the mainstream media is not discussing the 4% spike in precious metals this morning as vociferously as they discussed the imminent demise of gold and silver yesterday.”  Comex gold and silver futures ended Wednesday up 2.7% and 3.4% respectively, recouping the majority of Tuesday’s losses.

And with the CFTC in “sleep mode” because of the government shutdown, a Reuters‘ columnist warns that “commodity markets will go dark” if the shutdown lasts more than a few days.  He notes that the CFTC said on Tuesday that it will not publish COT reports during the shutdown, and with just 28 of 680 employees retained, the agency is expected to provide “a bare minimum level of oversight and surveillance,” based on a shutdown plan the agency sent to the White House Office of Management and Budget.

News & Views

Tim Iacono/Dan Norcini:  Shutdown, debt ceiling prompt a gold market sell-off & rebound?; Bonds and gold back to safe havens again?

Mineweb:  Julian Phillips – Gold/silver investor uncertainty to grow in the next 17 days

Bloomberg:  Shutdown seen merging with debt-limit fight amid impasse; Dollar seen as shutdown loser as growth hit spurs QE

CNBC:  Government shutdown probably kills the ‘Octaper’

Reuters/Capital Gains & Games/WSJ: Cancelations, delays ripple across U.S. in government shutdown; This shutdown is different from most others;  Economists react: Shutdown modest hit, or prelude to economic shock?

Jesse’s Café Américain:  Comex warehouse gold bullion – Price moves smell of desperation as inventory remains thin; Sam Seder & Matt Taibbi discuss the spokesmodels of the financial press

SilverSeek:  Is the mainstream media guilty of professional malpractice?

Silver Coins Today/Minyanville:  U.S. bullion silver coins dip in Sept, silver prices soar in quarter; Why silver could become the trade of the year

Seeking Alpha:  Precious metals remain problematic but prices invite

IBT/CNBC:  China’s gold fever rises, showing no signs of abating as ‘Golden Week‘ holiday kicks off

Mineweb:  Texas eliminates sales tax on precious metals coins

Guardian/New Republic:  What I saw as a Wall Street trader: a culture of bad behavior; No measly shutdown can keep Congress from sucking up to Wall Street

Zero Hedge:  Trade of the decade – Short ‘trust’; Millennials devastated as American Dream becomes nightmare for most

Hugo Salinas Price/Of Two Minds:  The coming new barbarism; Have we reached peak government?


Gold and Silver are ‘At the Heart of What is Happening’

Posted by on September 28th 2013 in Bart Chilton, CFTC, China, Federal Reserve, Gary Gensler, General Economy, Gold, India, JPMorgan, Media, Monetary Policy, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

In a wide-ranging and thought-provoking interview, the namesake of Jesse’s Café Américain speaks with German financial journalist Lars Schall.  They discuss his background and influences, why he writes about gold and silver, — “they are at the heart of what is happening” –how he sees the “currency wars” playing out, and his take on the CFTC closing its silver investigation without filing any charges:

“The manipulation of the silver market has the de facto sanction of the government and the regulators who have turned a blind eye to it for so many years that to admit it now would be awkward and embarrassing. The too big to fail banks hold so much power because they can threaten systemic destruction, but also ‘know where the bodies are buried’ so to speak. It is ironic that the U.S. system has now devolved into a series of threats of destruction and power standoffs, in both the political and financial systems. That is a symptom of lawlessness.”

A petition has been posted online calling on CFTC Commissioner Bart Chilton to resign and become a whistleblower.

Ted Butler: CFTC Avoided ‘Key Issue’ in Silver Probe Statement

Posted by on September 26th 2013 in Bart Chilton, CFTC, China, Federal Reserve, Gary Gensler, GATA, General Economy, Gold, India, JPMorgan, Monetary Policy, Quants, Short Sellers, Silver, Ted Butler, U.S. Congress, Wall Street | Be the first to comment!

As the CFTC closing its investigation into silver market manipulation without filing charges is “met with howls of protest by gold and silver bugs,” Ted Butler joins the fray:  “Undoubtedly, to those (like me) that are convinced that silver has been and is manipulated in price, the announcement doesn’t seem to offer any substantive evidence that silver wasn’t manipulated; just an affirmation that the investigation was thorough.”

“The announcement touched on many issues, but not the key issue,” writes Butler, “namely; how a 30% net market share by JPMorgan wouldn’t be manipulative to the price. Such a large percentage of market share had always been prosecuted by the CFTC in the past for being a market corner and manipulation. Rather than answer that simple question, the Commission initiated an expensive taxpayer-funded investigation designed to avoid answering the real question.”

And in an interview with King World News, GATA’s Chris Powell suggests that the CFTC’s hands were tied:  “the CFTC’s conclusion today that it cannot act regarding silver market rigging in no way discredits complaints of silver market manipulation.  This, in all likelihood, means that the CFTC already knew or has recently discovered that the market rigging is being conducted by the U.S. government.  As such it is exempt from ordinary securities law.”

News & Views

Coin News/Reuters:  Gold and silver end lower, fourth time in five sessions; Gold falls on dollar rise, mixed U.S. economic data

Dan Norcini:  Another piece of economic data – Another reaction in gold

Zero Hedge/Jesse’s Café Américain:  Deja deja deja vu gold smackdown; “Gold and silver look like safe havens here, but in the short term anything can happen…”

USA Gold/CNBC/Reuters:  Gold range bound as fiscal crisis looms; Wall Street worries about consumer as Congress squabbles

Tim Iacono:  Is the Fed now dysfunctional too?

MarketWatch/WSJ:  Fed’s Kocherlakota wants to boost, not taper, QE3; Fed should work more aggressively to battle unemployment

Zero Hedge/Liberty Blitzkrieg:  “Whatever it takes” comes to the U.S.; Peter Schiff was right part deux: The “taper” edition

Hard Assets Investor:  Jim Rickards says Fed will never end QE, gold to hit $5,000

Koos Jansen/Sean Brodrick/Marc Faber:  Gold held in China; 11 charts on China — See if you can spot the trend; China’s economic growth more like 4%

Business Standard/Economic Times:  As Indian investors seek silver lining, metal’s import up 311%; Why Indians love it when government makes gold expensive

BullionVault/ForbesDollar and gold price info from Venezuela; Changing balance of power may unlock Venezuela’s markets

AP:  One man’s hunt for a pirate booty gold mine

CFTC Closes Silver Investgation

Posted by on September 25th 2013 in Bart Chilton, CFTC, China, Federal Reserve, Gary Gensler, General Economy, Gold, Goldman Sachs, JPMorgan, Monetary Policy, Quants, Russia, Short Sellers, Silver, Ted Butler, U.S. Congress, Wall Street | Be the first to comment!

The CFTC on Wednesday “closed a five-year investigation into alleged manipulation of the silver market, saying 7,000 staff hours of investigation produced no evidence of wrongdoing,” reports Reuters, according to a six-paragraph statement issued by the agency on Wednesday, which said that “Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.”

Just like that, case closed,” laments Zero Hedge. “And now, we go back to everyone’s favorite CFTC ‘good cop’ Bart Chilton, who will make the case how aggressively the CFTC pursues every and all instances of precious metal manipulation.” And Bloomberg quotes Chilton as saying on Wednesday, “For me, there’s not been a more frustrating nor disappointing non-policy-related matter at the CFTC.”

“I cannot say that I am surprised” about the decision, remarks Jesse at his Café Américain, “since it was the safer thing to do, career-wise. Pleading ignorance is the last refuge of the craven, be they bureaucrats or CEO’s….Although he made a show of action now and then, Gary Gensler is political, and fully a creature of the system… Principles are not a career enhancing option in times of general deceit.”

The Huffington Post reported last week that the Obama administration is considering Bart Chilton’s chief of staff and senior legal counsel, Elizabeth Ritter, to replace Gensler as head of the CFTC.

More Reports & Reaction:

Wall Street Journal:  “The agency found some suspicious trades, but it didn’t find enough evidence to meet the criteria to bring a case, according to a person familiar with the probe.”

David Morgan:  “I’m not surprised … Legally this is how they have to stand, but if you look at what they said, they said based on the ‘evidence at this time,’ that still opens the door for investigation.”

MarketWatch:  CFTC finds no wrongdoing, but silver market manipulation talk drags on

SilverSeek:  GATA – CFTC can’t stop market rigging when U.S. government does it — it’s the law

Miles Franklin:  The CFTC … What did you expect?

Twitter“CFTC” & “Silver” feed

Other News & Views

BloombergGold, silver advance as U.S. budget concerns escalate; Gold up nearly $20 for first rise in four sessions, silver adds 30¢

Gold Switzerland/Zero Hedge:  Eric Sprott – “The West will regret all its financial policies someday soon”; The 3 big lies right now

GoldMoney/Minyanville:  Alasdair Macleod – The 80/20 rule; P. Radomski:  What silver and palladium are saying about gold

Reuters:  IMF – Turkey tops central banks’ gold buying in August

Bloomberg:  Russia increases gold holdings with Kazakhstan for 11th month; Thai gold buyer doubles imports after bear slump

Real Asset Co.:  How one man took China’s gold

Telegraph/National Geographic:  China to ‘rent 5% of Ukraine‘; Why China wants (and needs) foreign farm land

The Gold Report:  Lessons from the Sprott precious metals roundtable; Sprott’s Charles Oliver sees the shine returning to metals

GATA/Max Keiser:  Paper gold claims outnumber real ounces by 93 to 1, Kaye tells KWN; If you don’t believe we’re already back on a gold standard, think again

Zero Hedge/CNBC:  Goldman CEO Blankfein explains “doing God’s work” demands a year-end bonus

Robert Shiller:  Financial industry speculators – The best, brightest, and least productive?

Ted Butler on JPMorgan’s Market Machinations

Posted by on September 21st 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, JPMorgan, Quants, Short Sellers, Silver, Ted Butler, Wall Street | Be the first to comment!

For the September installment of its “Ask the Expert” feature, Sprott Money interviews Ted Butler, who begins by summarizing his fundamental problem with JPMorgan:  “they basically created a monopoly or a corner on the Comex gold and silver market, and they’re making those profits on what I consider an illegal basis. You’re not allowed to dominate and control markets, even if your incentive is to make money. You have to do it within the body of commodity law, and they’re clearly not doing that.”  Butler recently explained why he owns silver, despite all the market shenanigans.

This as a New York Times columnist writes about how JPMorgan’s general counsel has been knocked off his soapbox.  Before going through the revolving door, Stephen Cutler was the SEC’s head of enforcement, where he used to fiercely lecture executives for not setting an anti-corruption tone:  “A lawyer whose company was an SEC target during Mr. Cutler’s tenure said this week, ‘I have to admit to a certain amount of schadenfreude,’ adding: ‘At the time, he did a lot of grandstanding about lawyers being gatekeepers and the moral compass for the organization and how we should have prevented all this. He sounded great on the soapbox. Now I’ve been following JPMorgan and it’s pretty ironic.'”

Did ‘Whistleblower’ Interview Goose Metals’ Prices?

Posted by on September 15th 2013 in Bart Chilton, CFTC, Gary Gensler, Gold, JPMorgan, Media, Short Sellers, Silver, U.S. Congress, Wall Street | Be the first to comment!

On Friday afternoon, King World News released an interview with London-based metals trader Andrew Maguire, who said that he had been contacted by two JP Morgan employees, “who told me they had a large amount of documented evidence of market trading abuses in gold and silver by their bank,” and that the evidence had been submitted to the CFTC.  But “as far as I’m aware,” said Maguire, “these JP Morgan whistleblowers have not received any meaningful response to their evidence (from the CFTC), nor have we seen any formal charges laid against this bank.”

In a follow-up interview with King World News, economist and investment advisor, Michael Pento, said that “When I look at the [above] chart of the after-hours move in gold on Friday, right after the KWN interview with Maguire was released, not only do you see a substantial move in gold, but also a very dramatic increase in volume.  And, again, this was after-hours on a Friday.” Silver prices also saw a similar, substantial move up.

In responding to Maguire’s “shocking allegation,” Jesse’s Café Américain issued the following call to action:  “Since JP Morgan has been under investigation for manipulation in the energy markets, and since there have been repeated scandals in the willful manipulation by banks and traders in LIBOR and key derivatives metrics, I think that this cannot be dismissed out of hand as a conspiracy. If there is evidence the people deserve to know it. I suggest that you contact your Congressmen and Senators asking them to support such an inquiry.”