Is China the massive silver short?

[DMac]

Some interesting reading at Harvey Organ today:

http://harveyorgan.blogspot.com/

As many of you now, the vote for the implementation of position limits was 4:1 with the only negative vote belonging to newcomer Scott O'Malia. You will recall that it was this gentleman who asked me point blank if the comex would fail and I answered in the affirmative in that I felt that countries like China, would load the boat with the precious metals and cause an eventual default. For those of you who have not seen the video of my question and answer, it is on the top right hand side of my home page www.harveyorgan.blogspot.com.

http://www.youtube.com/watch?v=yeUI87hSvr0


I was intrigued with O'Malia's no vote. He seems to be wrapped up in the massive swaps by the banks and he does not know how to regulate these. He is probably scared to death if JPMorgan has to open their swap books and see the trades that I have highlighted to you to you on many occasions. It is has been my contention all along that the real short position on silver is not JPMorgan or HSBC but mainland China. The USA needed a hoard of silver supply to compliment the banking gold supply to keep the suppression scheme alive.



China had about 300 million oz of silver inherited with the overtake of China in 1949. The gold was air-freighted to Taiwin (69 tonnes) but the silver remained in Shanghai and Beijing. In 1990 the usa had 2 billion oz of above ground silver and by 2003 their supply went to zero. They needed the Chinese supply.



Here was their supposed deal: in or around the year 2000 and events leading up to now:



1. USA gives most favoured nation treatment to China.

2. China lends silver in a swap position. China gets dollars as collateral and USA gets silver.

3. China can get their silver back at any time say past 3 or 4 years.

4. China loves the deal as they pick up gold on the cheap.

5. It is now 2010 and China want its silver back but the usa state that the silver is gone. They can keep the usa dollars in collateral.



6. China refuses and is angry. They now massively short on the comex knowing that they will not supply the metal. It is up to the bankers.

7. They use conduits on the buy side and take delivery.



This is what O'Malia is frightened of when the CFTC sees the swap book on Morgan.



It now seems that Ted Butler is thinking along the same lines as me on the subject. From Ted Butler through Ed Steer:


The CFTC/CME position limits meeting on Thursday was a bust of sorts. Here's silver analyst Ted Butler's take on it. "The CFTC meeting went pretty close to what I had handicapped on Wednesday. The proposal involves a formula based upon total open interest [10% of the first 25,000 contracts of open interest...and 2.5% of the remaining open interest]. In silver, this would amount to a position limit of around 5,300 contracts based upon current open interest. This is an economically stupid level for silver position limits and the staff should be ashamed for proposing it. It is three and a half times greater than the 1,500 contract level proposed by thousands of members of the public."

"The sad truth is that the [staff's] proposal was only passed because it is a measure without substance and is only tentative at best. Given the current composition of the Commission, no meaningful reform on position limits is possible anytime soon. Nothing with teeth could garner a majority vote."

[But] "there was one surprising and very encouraging development. There was palpable and genuine alarm and concern expressed by Commissioners O'Malia and Sommers, two staunch opponents of position limits, about the [CFTC's] staff looking into the details of JPMorgan's swap book which justifies its giant concentrated silver short position on the Comex. Heretofore, this function had been handled by the CME. Of course, neither silver nor JPMorgan was mentioned, but it was clear that any such inquiry was of great concern [to them]. As you may recall, this issue came up at the last hearing on December 16th...and it led to my speculation that JPM's swap book was [filled] mostly with Chinese counterparties. Whether interests from China are holding positions in the OTC market with JPM is of secondary importance. The real issue is that JPMorgan has to have some excuse for holding the concentrated silver short position and it appears that the CFTC surveillance staff is beginning the process of inquiry
_______________


Related analysis:

http://news.silverseek.com/TedButler/1252075929.php


http://www.investmentrarities.com/ted_butler_comentary12-21-10.shtml

[DMac]

More analysis following this theme:

Is China Behind the Big Silver Short? (http://seekingalpha.com/article/243617-is-china-behind-the-big-silver-short)

[DMac]

Jesse's Café Américain mentions today's Harvey Organ blog article:

Is JPM Covering Up a Naked Silver Short Held By China As a Claim Against the Yanks? (http://jessescrossroadscafe.blogspot.com/2011/01/is-jpm-covering-up-naked-silver-short.html)

[Low_five]

so, do I have this right?

China had gold, gave gold to America.
short = betting price will go down...?

China has bet that price will go down. By saying they will... I dont know

wiki:
In finance, short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. It is a form of reverse trading. The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as the seller will pay less to buy the assets than the seller received on selling them.

So China is going to borrow silver from somewhere... sell it.... hope the price goes down by selling it? and buy it back at the depressed price?

did I get that right?

[Low_five]

The title of this thread makes it seem like theres a dark horse silver short out there. How are you, or anyone, aware of this short? How can you know there is a short but not know who holds the short?

[osoab]

http://gold-silver.us/forum/gold-silver-precious-metals/mamboni%27s-metal-mania!!!/msg168001/#msg168001

[Son-of-Liberty]

So China is going to borrow silver from somewhere... sell it.... hope the price goes down by selling it? and buy it back at the depressed price?

did I get that right?


Mostly. Only they aren't going to borrow the silver from anyone. It is a naked short position. Selling paper silver backed by nothing to lower the price, taking delivery of the real thing while silver is cheap. Assuming that china is behind the shorts that is.

[Son-of-Liberty]

It sort of makes sense too. They have tons of soon to be worthless FRN's to spend on something.

[DMac]

Low_five,

(I have not yet adopted the position that China is employing this strategy, just speculating/brainstorming)

Here is what I am thinking could be the case:

1. China lends a lot of physical silver to the US/Banks/whomever.
2. The banks use this silver to create more contracts for further shorting of silver (enabling a naked short & leases, like GLD/SLV did)
3. Some years pass, China wants the metal back.
4. There is no more silver left to give it back (in a nutshell - too many leasing programs etc)
5. Chinese get angry. Knowing that JPM/HSBC are in cahoots with the silver short program (representatives to the PTB money barons), they start piling on short contracts.
6. China covertly buys all the physical Au/Ag it can
7. Price of silver starts going up. This makes the position held by JPM/HSBC become an ugly liability, one that gets worse the higher the price goes.
8. China keeps adding to the silver short position until it becomes too unruly and causes a meltdown in the metal market
9. China renegs on the silver shorts (derivatives). The Chinese bank (about 2 years ago I think) said they are going to pick and choose which OTC derivative contracts they will play by the rules with, and which ones they will refuse payment if they think there are shenanigans going on the market. This was during the MBS scandal in 2008-2009 IIRC.

If I were China, and using this game plan, I would be set to make a killing in metals. And possibly crush the western markets at the same time as I believe silver is the Achilles heel in our global marketplace.

[Low_five]

Low_five,

(I have not yet adopted the position that China is employing this strategy, just speculating/brainstorming)

Here is what I am thinking could be the case:

1. China lends a lot of physical silver to the US/Banks/whomever.
2. The banks use this silver to create more contracts for further shorting of silver (enabling a naked short & leases, like GLD/SLV did)
3. Some years pass, China wants the metal back.
4. There is no more silver left to give it back (in a nutshell - too many leasing programs etc)
5. Chinese get angry. Knowing that JPM/HSBC are in cahoots with the silver short program (representatives to the PTB money barons), they start piling on short contracts.
6. China covertly buys all the physical Au/Ag it can
7. Price of silver starts going up. This makes the position held by JPM/HSBC become an ugly liability, one that gets worse the higher the price goes.
8. China keeps adding to the silver short position until it becomes too unruly and causes a meltdown in the metal market
9. China renegs on the silver shorts (derivatives). The Chinese bank (about 2 years ago I think) said they are going to pick and choose which OTC derivative contracts they will play by the rules with, and which ones they will refuse payment if they think there are shenanigans going on the market. This was during the MBS scandal in 2008-2009 IIRC.

If I were China, and using this game plan, I would be set to make a killing in metals. And possibly crush the western markets at the same time as I believe silver is the Achilles heel in our global marketplace.


K so. short contracts.

China sells silver it doesnt have for a trillion dollars... lets say a billion ounces. They hope the price goes down because its a short. one month from now they have to settle up. if the price went down... they buy a billion ounces for some amount less than a trillion dollars and make money and deliver a billion ounces to whoever. if the price goes up they have to buy it at trillion dollars plus some and deliver it.

so, how does this affect jpm,hsbc, usbanks, and myself? besides the fact that I bought a shit ton of SLV recently and its taking a minor dumparoo.

[vacuum]

Low_five,

(I have not yet adopted the position that China is employing this strategy, just speculating/brainstorming)

Here is what I am thinking could be the case:

So essentially what you're saying is this: they didn't get their physical back so they decided to buy it back off the market. They don't care about the price. In order to keep their buying from completely collapsing the market and in turn the world economy, they just sell tons of paper silver to offset the removal of physical. This create a net 0 oz of change of silver on the market, but removes a lot of physical.

[DMac]

You're a bit mixed up. Apparently around the year 2000 or so, China lent a huge amount of silver to the FED Conglomerated Inc. This metal was then used in the illegal price manipulation scheme (same as GLD/SLV) to control the price. Control the metals, control the $.

When China asked for the metal back, they were basically told "we don't have it" and were given paper payouts in return.

This is what pissed them off.

So next they begin shorting the metal in earnest, applying even more pressure to the FED Conglomerated Inc Banks to work some accounting magic.

Silver is a key in the con game that is the dollar. Kind of how nations never really left the gold standard, just in public they did.

[DMac]

Low_five,

(I have not yet adopted the position that China is employing this strategy, just speculating/brainstorming)

Here is what I am thinking could be the case:

So essentially what you're saying is this: they didn't get their physical back so they decided to buy it back off the market. They don't care about the price. In order to keep their buying from completely collapsing the market and in turn the world economy, they just sell tons of paper silver to offset the removal of physical. This create a net 0 oz of change of silver on the market, but removes a lot of physical.


Kind of, yeah. The short contracts are an attempt to cause a disaster in the CME/Comex adding fuel to the financial war currently underway. JPM/HSBC work with the Money Masters to manipulate Au/Ag. China (if this is true) is trying to wrench up their process.

(Could this be a segue to equating PM owners with 'financial' terrorists?)

[osoab]

You're a bit mixed up. Apparently around the year 2000 or so, China lent a huge amount of silver to the FED Conglomerated Inc. This metal was then used in the illegal price manipulation scheme (same as GLD/SLV) to control the price. Control the metals, control the $.

When China asked for the metal back, they were basically told "we don't have it" and were given paper payouts in return.



Do you have a source link to that? I don't recall stumbling into that tidbit of info before.

[Neuro]

As far as I am aware, both JPM & HSBC are Rothschild controlled banks.

So either:
A) Rothschilds are not very strong at all, since they let the Chinese, endanger their COMEX and in extension their entire western monetary systems, which is their major source of power...
B) They are in cahoots with the Chinese, and they intentionally will break the monetary systems of the west, when the time is right.
C) The Chinese are not behind these shorts, but Rothschild has commissioned JPM and HSBC, to try and keep the price of Silver and Gold down, through massive shorting, to keep the value of fiat currency artificially high = more power for the bankers.

Alt B) looks quite likely to me...

[JohnQPublic]

You're a bit mixed up. Apparently around the year 2000 or so, China lent a huge amount of silver to the FED Conglomerated Inc. This metal was then used in the illegal price manipulation scheme (same as GLD/SLV) to control the price. Control the metals, control the $.

When China asked for the metal back, they were basically told "we don't have it" and were given paper payouts in return.



Do you have a source link to that? I don't recall stumbling into that tidbit of info before.


I've been hearing about this on ZeroHedge, Harvey Organ's blog, and a few other places. here ia na article by Ted Butler from 2009:

http://news.silverseek.com/TedButler/1252075929.php


Here'a another from Gold-Eagle.com

http://www.gold-eagle.com/editorials_08/thegoldeneconomizer122610.html

I don't think it has been substantiated, but is being speculated about.

[vacuum]

Low_five,

(I have not yet adopted the position that China is employing this strategy, just speculating/brainstorming)

Here is what I am thinking could be the case:

So essentially what you're saying is this: they didn't get their physical back so they decided to buy it back off the market. They don't care about the price. In order to keep their buying from completely collapsing the market and in turn the world economy, they just sell tons of paper silver to offset the removal of physical. This create a net 0 oz of change of silver on the market, but removes a lot of physical.


Kind of, yeah. The short contracts are an attempt to cause a disaster in the CME/Comex adding fuel to the financial war currently underway. JPM/HSBC work with the Money Masters to manipulate Au/Ag. China (if this is true) is trying to wrench up their process.

(Could this be a segue to equating PM owners with 'financial' terrorists?)

I think my theory makes a lot of sense. If china really wanted a financial war, they could very easily cause one. Conversely, why would they put stress on the system if it didn't benefit them?

I don't think they are trying to put pressure on jpm just because they don't like them, in fact I think its the opposite. They are doing everything possible to keep the status quo while they buy up as much physical as possible.

The pressure on comex is not them trying to collapse it, which they could easily do, but an unavoidable consequence of them removing physical.

[JohnQPublic]

According to the prevailing theory, China lent COMEX a poop-load of silver several years ago. The big banks used it to manipulate prices. China now asked for it back, but COMEX cannot deliver it (I think they offered or paid cash). So China is shorting the poop out of the COMEX, while simultaneously extracting physical longs over a long time period (so as not to spook the natives). Once they are done getting their physical back, they will just default on the shorts (basically say, we are even).

[DMac]

Low_five,

(I have not yet adopted the position that China is employing this strategy, just speculating/brainstorming)

Here is what I am thinking could be the case:

So essentially what you're saying is this: they didn't get their physical back so they decided to buy it back off the market. They don't care about the price. In order to keep their buying from completely collapsing the market and in turn the world economy, they just sell tons of paper silver to offset the removal of physical. This create a net 0 oz of change of silver on the market, but removes a lot of physical.


Kind of, yeah. The short contracts are an attempt to cause a disaster in the CME/Comex adding fuel to the financial war currently underway. JPM/HSBC work with the Money Masters to manipulate Au/Ag. China (if this is true) is trying to wrench up their process.

(Could this be a segue to equating PM owners with 'financial' terrorists?)

I think my theory makes a lot of sense. If china really wanted a financial war, they could very easily cause one. Conversely, why would they put stress on the system if it didn't benefit them?

I don't think they are trying to put pressure on jpm just because they don't like them, in fact I think its the opposite. They are doing everything possible to keep the status quo while they buy up as much physical as possible.

The pressure on comex is not them trying to collapse it, which they could easily do, but an unavoidable consequence of them removing physical.


I think the announcement the PBOC made regarding its ability to default on any derivative liability if they find out any fraud is involved was a big swipe at the silver position.

It's a win win for China. They accumulate physical, short the hell out of it to enable more accumulation and if the shorts get too big they renege on the contracts leaving CME/COMEX holding the bag. When peak silver hits they stand to make a killing. Or if a new "Globo" currency comes around it will have some sort of commodity backing, again giving them a great position.

Personally I think the Chinese are conspiring with ZOG, but I could be wrong. I thought Rothschild Inc moved their operations into China about a decade or so ago. So if all of this does transpire it appears to me that it was all part of the plan.

[DMac]

Jesse's Café Américain:

An Interpretation of the China Silver Short Theory and Fractional Reserve Bullion (http://jessescrossroadscafe.blogspot.com/2011/01/explanation-of-china-silver-short.html)

[JohnQPublic]

To add to it, JP Morgan probably inerited those shorts when they took over Bear Stearns durint eh great collapse (scene I) in 2008:

http://www.commodityonline.com/news/How-JP-Morgan-Bear-Stearns-hammered-silver-prices-34601-3-1.html

So, maybe the government is playing cover for them while they attempt to diffuce the shorts.

I wonder if Obama and you know Hu are going to talk about this this week?

[DMac]

To add to it, JP Morgan probably inerited those shorts when they took over Bear Stearns durint eh great collapse (scene I) in 2008:

http://www.commodityonline.com/news/How-JP-Morgan-Bear-Stearns-hammered-silver-prices-34601-3-1.html

So, maybe the government is playing cover for them while they attempt to diffuce the shorts.

I wonder if Obama and you know Hu are going to talk about this this week?


The silver short position comes from the bust up of Long-Term Capital Management.

More fuel vis-a-vi some interesting reading:

LTCM Revisited – A Forensic Account (http://www.24hgold.com/english/news-gold-silver-ltcm-revisited--a-forensic-account.aspx?contributor=Gold+Price+Management&article=1994197332G10020&redirect=False)

Extra! Extra! Feds Bail Big
Silver Short, CFTC Sees No Evil (http://www.financialsensearchive.com/fsu/editorials/2008/1117.html)

Gold Price Manipulation- Bear Stearns Murdered at the Golden Gates (http://www.marketoracle.co.uk/Article6724.html)

[Neuro]

To add to it, JP Morgan probably inerited those shorts when they took over Bear Stearns durint eh great collapse (scene I) in 2008:

http://www.commodityonline.com/news/How-JP-Morgan-Bear-Stearns-hammered-silver-prices-34601-3-1.html

I seem to recall an opposite being discussed as Bear Sterns went under. That they actually were long gold and silver, and that this was the main reason, not being a teamplayer, for their bankruptcy threat, and being taken over by JPM. To me it doesn't make sense that a bank already massively short takes over another bank that is also massively short, and then all of a sudden the price of gold and silver changes direction. It does make sense though if one bank went all in on the long side, and prices rose from $11.50 to $21 in less than a year, and that bank was forced into being taken over by the megashort JPM, and POS goes from $21 to $8.50 again in less than a year... JPM certainly got a nice portfolio for next to nothing from the stockholders of Bear Sterns, and all they needed to do was to get their handlers at the Fed to call in some loans...

[Low_five]

To add to it, JP Morgan probably inerited those shorts when they took over Bear Stearns durint eh great collapse (scene I) in 2008:

http://www.commodityonline.com/news/How-JP-Morgan-Bear-Stearns-hammered-silver-prices-34601-3-1.html

So, maybe the government is playing cover for them while they attempt to diffuce the shorts.

I wonder if Obama and you know Hu are going to talk about this this week?


How do you defuse a short?

[DMac]

To add to it, JP Morgan probably inerited those shorts when they took over Bear Stearns durint eh great collapse (scene I) in 2008:

http://www.commodityonline.com/news/How-JP-Morgan-Bear-Stearns-hammered-silver-prices-34601-3-1.html

I seem to recall an opposite being discussed as Bear Sterns went under. That they actually were long gold and silver, and that this was the main reason, not being a teamplayer, for their bankruptcy threat, and being taken over by JPM. To me it doesn't make sense that a bank already massively short takes over another bank that is also massively short, and then all of a sudden the price of gold and silver changes direction. It does make sense though if one bank went all in on the long side, and prices rose from $11.50 to $21 in less than a year, and that bank was forced into being taken over by the megashort JPM, and POS goes from $21 to $8.50 again in less than a year... JPM certainly got a nice portfolio for next to nothing from the stockholders of Bear Sterns, and all they needed to do was to get their handlers at the Fed to call in some loans...


Check out the links in post #21

[Neuro]

To add to it, JP Morgan probably inerited those shorts when they took over Bear Stearns durint eh great collapse (scene I) in 2008:

http://www.commodityonline.com/news/How-JP-Morgan-Bear-Stearns-hammered-silver-prices-34601-3-1.html

I seem to recall an opposite being discussed as Bear Sterns went under. That they actually were long gold and silver, and that this was the main reason, not being a teamplayer, for their bankruptcy threat, and being taken over by JPM. To me it doesn't make sense that a bank already massively short takes over another
bank that is also massively short, and then all of a sudden the price of gold and silver changes direction. It does make sense though if one bank went all in on the long side, and prices rose from $11.50 to $21 in less than a year, and that bank was forced into being taken over by the megashort JPM, and POS goes from $21 to $8.50 again in less than a year... JPM certainly got a nice portfolio for next to nothing from the stockholders of Bear Sterns, and all they needed to do was to get their handlers at the Fed to call in some loans...


Check out the links in post #21

Yes this article pretty much substantiates my memory of what was discussed on old GIM...

http://www.marketoracle.co.uk/Article6724.html

So JPM found out that Bear Sterns was LONG Gold by 12 Billion dollars, they could short the crap against the knowledge they would get this portfolio, thus earning massively on their own massive short position. Probably by the time they actually physically took over the portfolio, they had managed to drive down the price of gold so much, that Bear Sterns portfolio was at a loss, and if I remember it rightly the Fed had promised JPM to cover any losses in their position...

[Neuro]

The odd thing now is that the reason why JPM is massively short gold now, is because they inherited a short position from Bear Sterns, while most likely the opposite is the truth! Lying bastards!

[DMac]

The odd thing now is that the reason why JPM is massively short gold now, is because they inherited a short position from Bear Sterns, while most likely the opposite is the truth! Lying bastards!


If Long-Term Capital Management was massively short Au/Ag as a FED front company, this was passed on to Bear. Bear, being a successful company, was increasing their own long position. They ended up with both positions I think.

[Neuro]

The odd thing now is that the reason why JPM is massively short gold now, is because they inherited a short position from Bear Sterns, while most likely the opposite is the truth! Lying bastards!


If Long-Term Capital Management was massively short Au/Ag as a FED front company, this was passed on to Bear. Bear, being a successful company, was increasing their own long position. They ended up with both positions I think.
This doesn't make sense in light of this quote from your previously linked article:

That Bear Stearns and LTCM should be mentioned in the same breath should also come as no surprise for another reason; Bear Stearns was the only major player invited by the NY Fed / Treasury to participate in the “then bail-out of LTCM” who refused to participate. Not participating, or bearing a portion of the financial burden, in the suppression of the gold price effectively made Bear Stearns “an enemy of the State”.
I think you meant that JPM took on the short position of LTCM not Bear Sterns!

[JohnQPublic]

What it all comes back to are derivatives. derivatives + TBTF + Fed = disaster.

[DMac]

The odd thing now is that the reason why JPM is massively short gold now, is because they inherited a short position from Bear Sterns, while most likely the opposite is the truth! Lying bastards!


If Long-Term Capital Management was massively short Au/Ag as a FED front company, this was passed on to Bear. Bear, being a successful company, was increasing their own long position. They ended up with both positions I think.
This doesn't make sense in light of this quote from your previously linked article:

That Bear Stearns and LTCM should be mentioned in the same breath should also come as no surprise for another reason; Bear Stearns was the only major player invited by the NY Fed / Treasury to participate in the “then bail-out of LTCM” who refused to participate. Not participating, or bearing a portion of the financial burden, in the suppression of the gold price effectively made Bear Stearns “an enemy of the State”.
I think you meant that JPM took on the short position of LTCM not Bear Sterns!




In the end yes, but I am pretty sure LTCM short went to Bear. JPM inherited it when Bear went kaput.

[DMac]

What it all comes back to are derivatives. derivatives + TBTF + Fed = disaster.


Part of the reason I think this subject gets so messy is that it is the heart of the financial issues we are facing. One of the links above talks of how the Bank of Italy was involved in the gold short scheme and how they (Italy) were constantly updating their gold reserve off spot price.

The experiment of the USD has led to many different illusions being created to keep up the con game, the illusion that the big financial players in the world left gold.

Understand the gold market and all the financial machinations become much more clear.

[JohnQPublic]

What it all comes back to are derivatives. derivatives + TBTF + Fed = disaster.


Part of the reason I think this subject gets so messy is that it is the heart of the financial issues we are facing. One of the links above talks of how the Bank of Italy was involved in the gold short scheme and how they (Italy) were constantly updating their gold reserve off spot price.

The experiment of the USD has led to many different illusions being created to keep up the con game, the illusion that the big financial players in the world left gold.

Understand the gold market and all the financial machinations become much more clear.



Hmmm... Gold is what you seek?

[Neuro]

The odd thing now is that the reason why JPM is massively short gold now, is because they inherited a short position from Bear Sterns, while most likely the opposite is the truth! Lying bastards!


If Long-Term Capital Management was massively short Au/Ag as a FED front company, this was passed on to Bear. Bear, being a successful company, was increasing their own long position. They ended up with both positions I think.
This doesn't make sense in light of this quote from your previously linked article:

That Bear Stearns and LTCM should be mentioned in the same breath should also come as no surprise for another reason; Bear Stearns was the only major player invited by the NY Fed / Treasury to participate in the “then bail-out of LTCM” who refused to participate. Not participating, or bearing a portion of the financial burden, in the suppression of the gold price effectively made Bear Stearns “an enemy of the State”.
I think you meant that JPM took on the short position of LTCM not Bear Sterns!



In the end yes, but I am pretty sure LTCM short went to Bear. JPM inherited it when Bear went kaput.

But your linked article states that Bear Sterns refused to take on the bail out of LTCM among the fed Favoured banks...