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
Bloomberg: Gold, 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?