Tony Daltorio: It was a rather quiet week in the silver market. Silver prices dropped about 50 cents an ounce to trade in the $22 an ounce range.
The only real news – major news, that is – in the marketplace was the decision by the Commodity Futures Trading Commission (CFTC) to announce that its probe into silver price manipulation by the large Wall Street banks is closed without any action taken. This is after a five-year probe into the workings of the silver market.
Some silver investors must think the CFTC was staffed by Japanese monkeys.
You know the monkeys I’m referring to, from the proverb “see no evil, hear no evil, speak no evil.” The first monkey (Mizaru) covers his eyes, the second (Kikazaru) covers his ears, and the third (Iwazaru) covers his mouth.
The original monkeys appeared in a carving over a door at the renowned 17th century Tosho-gu shrine in Nikko, Japan. But I think they are a good way to symbolize this regulatory ineptness…
Here’s the CFTC’s reasoning for dropping the case.
Why CFTC Drops Silver Prices Case
The CFTC decision followed a decision six months earlier by a U.S. District Court to dismiss a class-action lawsuit claiming silver price manipulation against JPMorgan Chase (NYSE: JPM).
The CFTC spent more than 7,000 hours reviewing data on silver positions and related derivatives.
There was a difference between this investigation and others previously conducted by the Commission.
In prior inquiries, the CFTC said it found no evidence of wrongdoing. But in this latest investigation, it stated it had not found sufficient evidence to bring a case.
The CFTC statement said: “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.”
In other words, they may have found something. But the CFTC must have felt it wasn’t enough to win a case against high-paid Wall Street lawyers.
This decision highlights the fact that regulators face very stiff obstacles in proving market manipulation despite the expanded powers the CFTC received in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.(...)Click here to continue reading the original ETFDailyNews.com article: Silver Price Manipulation: Facts and FrustrationYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here