JP Morgan Dimon MastersThe NYTimes Dealbook reports tonight that the Federal Energy Regulatory Commission (FERC) intends to take action against JP Morgan and Blythe Masters over manipulative trading schemes in the Michigan and California energy markets.

FERC’s 70 page filing reportedly singles out JPM Head of Commodities Blythe Masters for her role in the scheme, and alleges that Blythe personally participated in JPMorgan’s efforts to block the state authorities from understanding the reasons behind JPMorgan’s bidding schemes, and that Blythe made scores of false and misleading statements and material omissions to authorities and that enforcement officials plan to recommend Masters be held “individually liable.

Surely Blythe will quickly be exonerated for the fact that JPM’s alleged energy market manipulation was not a directional position, but was merely hedging on behalf of a client…

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Dealbook reports that Masters is one of the key targets in the probe:

 

In the energy market investigation, the enforcement staff of the Federal Energy Regulatory Commission, or FERC, intends to recommend that the agency pursue an action against JPMorgan over its trading in California and Michigan electric markets.

The 70-page document also took aim at a top bank executive, Blythe Masters. A seminal Wall Street figure, Ms. Masters is known for helping expand the boundaries of finance, including the development of credit default swaps, a derivative that played a role in the financial crisis.

The regulatory document cites her supposed “knowledge and approval of schemes” carried out by a group of energy traders in Houston. The agency’s investigators claimed that Ms. Masters had “falsely” denied under oath her awareness of the problems and said that JPMorgan had made “scores of false and misleading statements and material omissions” to authorities, the document shows.

It is unclear whether the agency will file an action against JPMorgan based on the investigators’ findings. A majority of the five-member commission must first endorse the case. If the regulator does proceed, it could fine the bank and Ms. Masters.

“We intend to vigorously defend the firm and the employees in this matter,” said Kristin Lemkau, a spokeswoman for the bank. “We strongly dispute that Blythe Masters or any employee lied or acted inappropriately in this matter.”

 

Enforcement officials reportedly are alleging that Blythe obstructed justice by planning and executing a systematic cover-up of the manipulation, and that Masters should be held individually liable:

 

For now, according to the document, the enforcement officials plan to recommend that the commission hold the traders and Ms. Masters “individually liable.” While Ms. Masters was “less involved in the day-to-day decisions,” investigators nonetheless noted that she received PowerPoint presentations and e-mails outlining the energy trading strategies.

The bank, investigators said, then “planned and executed a systematic cover-up” of documents that exposed the strategy, including profit and loss statements.

In the March document, the government investigators also complained about what they said was obstruction by Ms. Masters. After the state authorities began to object to the strategy, Ms. Masters “personally participated in JPMorgan’s efforts to block” the state authorities “from understanding the reasons behind JPMorgan’s bidding schemes,” the document said.

The investigators also referenced an April 2011 e-mail in which Ms. Masters ordered a “rewrite” of an internal document that raised questions about whether the bank had run afoul of the law. The new wording stated that “JPMorgan does not believe that it violated FERC’s policies.”

 

So Blythe Masters allegedly lied under oath to investigators over her role, knowledge, and involvement in energy trading schemes at JPMorgan, but yet we are expected to believe that JP Morgan does not hold a directional position in silver or manipulate the metal due to Blythe testimony on CNBC?


While we would like to believe we will see justice dealt out (and the enforcement officials recommending Blythe be held individually liable causes us to hold out ever-so-faint a hope), in reality both JPM and Blythe will likely be dealt a hand-slap fine (which will be merely a drop-in-the-bucket-cost-of-doing-business compared to the profits generated by the alleged scheme), and it will be back to business as usual for our friends at The Morgue.

 

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  1. Who her? Nonsense. CFTC or the new SEC Commander will do nothing. Remember Holder says they are to big to file suit on!
    Move along, nothing spectacular here to see folks! Nothing is going to happen.

    • Through the work of Blythe, we now have two indexes GSR. One GSR “by spot price on gold and silver” – is 61 and the second GSR “by physical price on gold and silver” – is 51. LOL!

    • >>>Nothing is going to happen
      Not from the law at least, but the markets might shift to Asia and you might end up only being able to purchase a piece of paper saying you own some commodities in the future to be delivered by a broke economy and an industry that will not exist anymore in the future because nobody will do business in New York or London anymore and the Western economies will price out their own physical operations.
      New York and London will basically be Monopoly Markets where you can do some Virtual Business like an online game, and in Asia or South America you could go and do some real business when you have gotten bored of that stupid game. It is actually really funny if you think about it. When the USD really starts to die London and New York will die and HEAPS AND HEAPS of bankstaz will jump off the roofs of large buildings in Manhattan and London.
      The irony of the whole thing is that not only did the labor migrate to China such as the Apple factory with the suicide nets, but that Asia might have to export the idea of suicide nets to Manhattan and London :P ..or.. :( sad but true.
      NYC and London, R.I.P … The worlds biggest Monopoly Game is coming to an end, but at least Blythe will have a BIIIG Monopoly Dollar bonus to make her feel like she won in the end…not that she will be able to even buy a friend with her 1 Trillion Dollar Hyper Inflation Notes. Who would want to be friends with someone who so many people will hate and want to exact revenge upon. I wouldn’t want to be her, I bet you even her children would tell people that they knew her not.

    • I agree, absolutely nothing will happen.
       
      The powers that be will “do an investigation” bla bla bla , create an illusion to placate the gullible masses.
       
      We have seen this before.
       
      A modified definition of stupidity ” seeing the same thing happening again and again, and expecting a different result”.
       
      They play the masses as stupid (I guess, by and large, they are).
       
      Keep stacking !
       
       

  2. So somebody in middle management caught her red handed, their boss passed on it, so they went public. Of course nothing will come of it until after the collapse. Blythe is like Albert Speer, pretending she knows nothing, but really she’s at the heart of it all. A 20 year prison sentence would be a kindness. She’ll be lucky not to be hung from a tree once the truth comes out.

  3. After the state authorities began to object to the strategy, Ms. Masters “personally participated in JPMorgan’s efforts to block” the state authorities “from understanding the reasons behind JPMorgan’s bidding schemes,” the document said.
    How dare FERC!
    Don’t they realize that they are in the presence of Royalty! 
    Ordinary citizens would be charged with conspiracy and obstruction in cases such as this. However, Blythe Masters, Her Highness, is no ordinary citizen. She and her colleague, Jamie Dimon, fight a never ending battle for deceit, injustice, and the New World Order! :-)

  4. I guess this just means that the Feds need some more ready cash (fines) and that JP Morgan simply has an additional cost to doing business coming up. I’m sure for every 100 Million Monopoly Dollars they lose in fines they will be happy enough to steal from the producers and consumers of REAL commodities through some more paper shuffling ‘operations for their clients’….clients = themselves.
     
    In the not so distant past people found guilty of crimes not even close to the scale and magnitude that TBTFs such as JPM are openly committing would be facing a gallows…..but of course, we don’t do that anymore…heck, we don’t even allow them to go to court, and if in fact they end up in court a team of superstar lawyers will be able to convince the chemically demented jury and immorally complicit Judge that such ‘operations’ are legitimate market occurrences and that their critics just simply ‘don’t understand’ the complexities of the market transactions and the correct flow of trades.
     
    In the video clip hearing Blythe blather on about the so called ‘noise in the blogosphere’ and especially the slightly constipated facial expression on her twisted face when she mentioned the ‘blogosphere’ was a very telling signal that without the internet, the mainstream media control that these outright thieves, liars, and fraudsters have at their disposal would create a situation where their open frauds would be completely unchallenged. It seemed like she was well aware of the fact that the inconvenient truths behind her dirty laundry is being dragged out for all to see and that she isn’t going to be able to get away with this rubbish forever.
     
    But of course if the ‘justice’ ‘system’ doesn’t start convicting fraud or correcting market operating procedure soon, Blythe an other usual suspects may very well find themselves at the helm of a Casino that everybody knows is rigged and is lacking any punters at all except the Fed and their printing press of death. The Shanghai Pact countries and the BRICS will have to start posting the REAL exchange rates for REAL commodities in separate Asian Exchanges where a punter can actually get delivery of a REAL commodity after a purchase.
     
    Who gives a damn about the hedging operations of her clients that are done at the expense of REAL industries, with REAL employees, and REAL consumers who couldn’t give a %$#& about her ‘clients’. Take your GLD and your Futures and JUMP you VAMPIRE FIEND. There is a warm seat in Hell waiting for you for all of the pain and suffering that these mega thefts have caused to the incomes of real labourers and workers and honest merchants.

  5. the bitch faced cow should be held and tried oj crimes against humanity then hanged beside all the others..
    but won’t.

    P.s. watch that cunt and her crew work on silver today for spite. It is starting to give back overnight gains waterfall style.

  6. Alway remember that the ‘Light’ truth is a stake in the Vampire Luciferians heart…what keeps them alive is darkness ,thats where they operate ,hate is a strong emotion they have well earned.Each ruling by the ‘traitors’ in the  courts  against the people , for the luciferians causes more anger..

    • silverrrr:  Yes, something will happen, I hope she brings Janet Reno and Janet Napilitano to that party.

      Two more donkeys (asses) will be needed.

  7. The whole Commercial world runs on the very same Uniform Commercial Code, set up by the PTB.  There are No Governments, they are ALL CORPORATIONS! We see what they want us to see, in the Commercial news. And when someone screws up they provide Scapegoats from time to time. This keeps the focus off the PTB. Gotta have someone to blame when this all blows up! China is under the very same laws, we all are under. China and Japan both hold most of the bonds that keep so many Americans lock up in prison. Since no one is discharging there debt in America, they do it through the courts. You are CHARGED  with a crime. Judges are BANKERS!  It is All Commercial Contract Law!

  8. Here is what will happen.   JPM will cough up $460,000,000 in  fines. (My guess)  Blythe will get a wrist slap  She will never go down  She makes JPM billions and knows where the bodies are buried. 
    I’d like to give her something along the lines of a cricket bat on her ass until it glows like a 747 landing light 
    That would be pretty sexy IMO.  Dibs on being the first in line.
    Did I hear that Turd was tapping that ass.  F***     If that is true TF has no class.
    But in reality the fine will maybe .1% of the profits so nothing will happen to stop these practices. 

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