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osoab
27th October 2010, 03:26 PM
JPMorgan, HSBC Accused of Manipulating Silver Futures (http://www.bloomberg.com/news/2010-09-25/u-s-state-officials-investigate-after-gmac-halts-evictions.html)


JPMorgan Chase & Co. and HSBC Holdings PLC were sued by an investor claiming they manipulated silver futures and options prices in violation of U.S. antitrust law.

The investor alleges that starting in March 2008, the banks colluded to suppress or maintain prices of silver futures so call options on the futures would expire as worthless, according to the complaint filed today in federal court in Manhattan.

The banks placed “spoof” trading orders, or the “submission of a large order which is not executed but influences prices and is then withdrawn before it reasonably can be executed,” according to the complaint.

The suit, which seeks class action, or group, status, was filed by Peter Laskaris, a New York resident who traded in silver futures and claims damages based the collusion.

Joseph Evangelisti, a spokesman for New York-based JPMorgan, declined to comment. HSBC spokeswoman Lisa Sodeika didn’t immediately return a call seeking comment.

The case is Laskaris v. JPMorgan Chase & Co., U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Joel Rosenblatt in San Francisco at jrosenblatt@bloomberg.net.

osoab
27th October 2010, 03:28 PM
So I take it that he is not looking at illegal short positions with this lawsuit?

1970 silver art
27th October 2010, 04:38 PM
JPMorgan is guilty of manipulating silver but they will IMO end up being found "not guilty". JPMorgan is NEVER guilty. :sarc:

osoab
27th October 2010, 04:56 PM
JPMorgan is guilty of manipulating silver but they will IMO end up being found "not guilty". JPMorgan is NEVER guilty. :sarc:



They will buy/influence the decision.

JohnQPublic
28th October 2010, 05:33 AM
So I take it that he is not looking at illegal short positions with this lawsuit?


I think the large "spoof" order may be in effect a naked short. I am not sure how the futures work, but the investor alleges "the banks colluded to suppress or maintain prices of silver futures so call options on the futures would expire as worthless".

1970 silver art
28th October 2010, 05:55 AM
JPMorgan is guilty of manipulating silver but they will IMO end up being found "not guilty". JPMorgan is NEVER guilty. :sarc:



They will buy/influence the decision.


Yeah you are right osoab. JPMorgan is more than capable of buying a "not guilty" verdict.