Earlier this week, the law firm Kaplan, Fox and Kilsheimer sued JP Morgan Chase and HSBC bank for manipulating the silver market from June 2008 through March 2010. This a class action lawsuit alleging:
"that around June 2008, when JP Morgan acquired Bear Stearns, including
Bear Stearns' short positions in silver futures, JP Morgan and HSBC
commenced a conspiracy to manipulate, and did manipulate, the market for
silver futures and options contracts on COMEX. Specifically, the
complaint alleges that around this time, JP Morgan and HSBC, pursuant to
their conspiracy, acquired massive short positions on silver futures
contracts in an effort to artificially depress the price of the silver
futures market. The defendants realized substantial illegal profits in
connection with their scheme, while investors who had no knowledge of
the scheme, lost substantial amounts of money because of the defendants'
conduct."
This is the
third time in the last few weeks that these two banks have been sued for manipulating the silver market. Thanks to these lawsuits, the strong warning from the CFTC regarding new and reduced silver position limits on the COMEX and worldwide investors getting wise to the massive, un-backed short silver position of JP Morgan Chase and HSBC, silver is set to continue it's strong price rise as the (alleged) manipulation is unwound.
