Ted Butler: Transparency

Submitted by SD Contributor Ted Butler:

In the true spirit of transparency and of honesty being the best policy, three weeks ago I wrote to each member of the board of directors of JPMorgan. Since my main intent is to see the silver manipulation ended and not to hurt JPMorgan, I wanted to give them time to respond before publishing the letter. I didn’t want to sandbag or sucker-punch the bank by rushing to make public something I undertook on a good faith basis. If someone at JPMorgan had contacted me indicating the matter was being genuinely reviewed, I would have held off. However, the lack of response suggests to me that it may be business as usual as far as no one in charge moving against a blatant crime in progress. I’m not prepared to patiently wait indefinitely until someone decided to respond.

My allegations in silver are incredibly specific. I believe that JPMorgan, by virtue of a massive concentrated short position in COMEX silver futures, is manipulating the price of silver lower than it would be otherwise. If JPMorgan’s concentrated short position did not exist, the price of silver would be substantially higher. It does not matter if the bank is hedging or engaged in market-making; the mere existence of such an unprecedented large and concentrated short position proves manipulation.

I’ve gotten more mail than usual from subscribers recently, most with a common theme – I should publicize the real goings on in silver to a wider audience. Many suggested taking out advertisements in popular media sources, like the Wall Street Journal, accompanied with genuine offers of contribution. Others suggested I approach the big hedge funds to interest them in investing in silver. Not only do I agree with the suggestions, but I have been trying to extend the reach of the real silver story for quite some time. It’s kind of what I do.

I don’t think The Wall Street Journal would even accept an ad that accused one of their most important advertisers and sources of information, JPMorgan, of wrongdoing under any circumstances. But that doesn’t mean these subscribers’ suggestions were off-base. After all, I’ve been long convinced that as the facts in silver become more widely known, the manipulation will be brought to an end as investors will buy silver once they learn the truth. What could be better than reading about it in the mainstream media?

More importantly, these suggestions go to the heart of the concept of transparency, the issue front and center in current efforts to enact modern financial regulatory reform. It was the lack of transparency that largely led to our great financial crisis; from AIG hiding their exposure in credit default swaps to ratings agencies assigning phony credit ratings. Transparency would have exposed Bear Stearns and Lehman Bros. much earlier and with less collateral damage. It would be hard to describe Dodd-Frank without using the word transparency and for that reason it is one of the most used terms in CFTC chairman Gary Gensler’s public vocabulary. The word is up there with the most revered of financial words. Who (except for the banks) could be against making everything as open and honest as possible?

In the same true spirit of transparency and of honesty being the best policy, three weeks ago I wrote to each member of the board of directors of JPMorgan. Since my main intent is to see the silver manipulation ended and not to hurt JPMorgan, I wanted to give them time to respond before publishing the letter. I didn’t want to sandbag or sucker-punch the bank by rushing to make public something I undertook on a good faith basis. If someone at JPMorgan had contacted me indicating the matter was being genuinely reviewed, I would have held off. However, the lack of response suggests to me that it may be business as usual as far as no one in charge moving against a blatant crime in progress. I’m not prepared to patiently wait indefinitely until someone decided to respond.

My allegations in silver are incredibly specific. I believe that JPMorgan, by virtue of a massive concentrated short position in COMEX silver futures, is manipulating the price of silver lower than it would be otherwise. If JPMorgan’s concentrated short position did not exist, the price of silver would be substantially higher. It does not matter if the bank is hedging or engaged in market-making; the mere existence of such an unprecedented large and concentrated short position proves manipulation. That’s a key feature of commodity law and is why the CFTC monitors concentration closely.

For some reason, however, the Commission treats silver differently than other commodities. In addition to ignoring the concentrated short position, it glosses over the results of the concentration on price. Silver witnessed, among other large and uneconomic sell-offs, two distinct sell-offs in 2011, in which the price fell 30% and 35% within a few days. Not one word was heard from the Commission on the two most pronounced sell-offs in modern commodity history. Yet, this week Commissioner O’Malia promised that the Commission was looking into the 4% price decline in oil. A decline in oil of 4% gets same day comment; 35% down in silver is not worthy of any comment. This amounts to a level of discrimination that is not tolerated in society or in regulatory matters.

In addition to being specific, my allegations around JPMorgan manipulating the silver market are consistent and continuous. Four years ago, instead of responding directly to public complaints about JPMorgan’s concentrated short position, the Commission chose to investigate as a way of kicking the can down the road. After four years, the issue remains because JPMorgan’s concentrated short position remains. No one in authority wants to make the issues around this short concentration more transparent; not the CFTC, not the CME, not JPMorgan itself. Transparency is good in principle and for the other guy; but when it comes to silver, not so much.

I ask you to read the letter as if you were a director on JPMorgan’s board. These are responsible people who have a duty to guide and protect the bank and to make sure the company is operating with ethics and within the law. As a director, how would you react to allegations that the bank is manipulating the price of silver lower? What about reputational damage? Would you just ignore the allegations? For a list of directors and as a launch site to JPM’s code of conduct, start here – http://www.jpmorganchase.com/corporate/About-JPMC/board-of-directors.htm Also, try to reconcile the oft-stated words of JPM’s CEO, Jamie Dimon, that he and the bank are only interested in doing the right thing. Is manipulating the price of silver the right thing to do?

August 30, 2012

JPMorgan Chase & Co.
Attention Mr. Lee R. Raymond
Office of the Secretary
270 Park Avenue, 38th Floor
NY, NY 10017

Dear Mr. Raymond;

I am writing to you and other board members to alert you to my allegations of a continuing manipulation of the silver market by JPMorgan. Since the takeover of Bear Stearns in 2008, JPM has maintained an unusually large concentrated net short position in silver futures contracts on the COMEX, owned by the CME Group. JPMorgan’s concentrated position is so large that it dominates the market and is manipulative to the price of silver, in and of itself. So controlling is the company’s position, that in recent weeks it has been the sole reporting commercial silver short seller. It is impossible for that activity not to be manipulative.

I am a silver analyst who has written extensively about JPMorgan’s involvement in the silver manipulation for four years, both in public and private articles. I have sent your CEO, Mr. Jamie Dimon, more than 300 articles in which I mention the role of JPM in the silver manipulation. I have never had a response from Mr. Dimon or the company. As a result of the revelation of a US Bank-held concentrated short silver position in August 2008, the federal commodities regulator, the US Commodity Futures Trading Commission, initiated a formal silver market investigation which may reach a conclusion soon. Additionally, you may be aware that JPMorgan has been named in a civil class-action suit alleging a silver market manipulation by the company. So widespread is the public consensus that JPMorgan is manipulating the price of silver that a Google search of “JPMorgan silver manipulation” shows 800,000 results.

It has never been and is not now my intent to harm JPMorgan. My objective is to end a long-running silver price manipulation that began long before JPM’s assumption of Bear Stearns’ concentrated silver short position. It doesn’t seem right for me to continue to make allegations about JPMorgan’s involvement in a silver market manipulation, possibly including manipulative short sales in the leading silver ETF, SLV, if the company is not involved. I’m sure you would agree that it’s also not right if JPMorgan is involved in a silver price manipulation.

I am reaching out to you and your fellow board members to investigate and help resolve a matter that must be resolved. I stand open to providing you with anything I’ve written about JPMorgan and I am including an article from Aug 22, 2012, in which I mention JPM extensively.

Sincerely yours,

Ted Butler

In closing, you might want to briefly review the August 22 article, “Staying Focused” (in the archives) as it was particularly descriptive of my allegations against JPMorgan. If you feel so inclined, you might also write to the directors. The whole purpose here is to bring a resolution to this longstanding and serious market crime. Of course, should I hear from JPMorgan, I will inform you if I can. Let’s hope I don’t hear from them by means of a process server.

Ted Butler

September 19, 2012

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Comments

  1. Ted Butler must be really naive to believe that this Washington- Wallstreet slime would actually do the right thing. The US Corporatocracy is a criminal organisation. These people like Jamie Dimon, Lloyd Blankfein, Obama, Romney, Clintons, the Bush mafia are all sociopaths. They are morally, ethically, legally and obviously financially bankrupt.
    The US Government is desperately trying to preserve the petrodollar and will attack anyone who challenges them. Unfortunately, the US is fast running out of friends as the recent Non Aligned Members meeting in Tehran, where 130 countries were represented, clearly showed. China has signed currency swap deals with many countries to bypass the US dollar even offering now to trade oil in yuan. All of this is very bad for the US dollar.
    Precious metals are the canary in the coal mine of monetary debasement and will be viciously attacked, led by the USA government, until the US dollar collapses. The endless money printing will encourage more people to take up a position in physical metals putting a severe strain on the LBMA and Comex until they default. If TPTB decided to do nothing  the global financial system would collapse and as banks go under, precious metals would soar anyway. Therefore they are trapped like rats.
     A finite tangible asset will beat infinite paper every time. Step on board before it’s too late.
     

    • butler is absolutely not naive, nor did he expect that his letter would prompt a change in behavior at JPM.
      what he is, however, is a gentleman and a long-standing advocate of silver.
      his behavior, and his efforts, are a credit and an asset to the silver investment community, much more so than those who use coarse language and a belligerent attitude and think that somehow that will effect a useful change in the situation.
       

    • How true, reflector, how true…

      “you can catch more ants with Honey, than with vinegar” 

    • Yet, the sheeple doesn’t believe this thing and they ignore, laugh, mock and even fight those who say and believe those stuff. I kinda want the SHTF to happen so that this way, I can prove everyone around me that I’m not foolish with my ideas.

  2. Hate to be cynical, but I suspect that Ted’s letter ended up in the trash bin over there at JPM. No surprise that he didn’t get a response.

  3. Arrr, mateys – I think be knowing the reason for Ted Butler’s confusion, bless his scabby heart.  He wrote that fine correspondence on September 19th, do ya see?  Shiver me timbers, me lads, but I’m of a mind to reckon ole’ Ted’s misconstrued the nature of Talk Like A Pirate Day as Talk To A Pirate Day!  It’s the only explanation that fits.

  4. I used to follow Ted Butler when he was a lone voice in the wilderness.   When he became “paid subscriber only” I lost interest.
    I now find he is rather a sad character that the river of events has left in a side-pool. 

    He is still bothering with JPM when the real men behind the curtain are the Fed, Bank of England, BIS, US and UK governments.   JPM is just their “front-man” in the operation.

    Ted Butler reminds me of Don Quixote tilting at windmills.

  5. Ted butler isnt going to change jp morgan the fed the us govt or anything …. but just like silver doctors and other sites the more things are bought into public conciousness the larger the groundswell of public disatisfaction ,,, this doesnt seem that impressive or fast but everything has a tipping point whereby the nay sayers finally can no longer maintain the lie…. Ted has played a small part in making people aware of the manipulation i would argue that silver doctors has played a larger part but every person who buys physical silver puts pressure on supply and ultimately the comex… the majority of us are small holders but between us all i wouldnt be suprised if we havent swallowed a couple of million ounces. there are larger players out there moving out of paper into physical and rumours abound about the difficulty of meeting demand … can we doubt that the end is coming … we just dont know the date …. the stack is still growing in my house …
    max

  6. People are being too hard on the guy. He is doing his best to promote the cause, has given them what could be construed as a warning and may yet have a few cards up his sleeve. He has been at this longer than most and deserves some credit. Ask yourselves; what are you doing for the cause that is greater than what he has done? If you think you have done more then you have a right to be more critical.

  7. The ‘big picture’ here (as it has been for about the past three centuries) is suppression of metal as money, in order for government to retain its traditionally high degree of conceptual validity in society. The ‘value’ of banknote ‘money’ is a subjectively political determination, as opposed to the objective rationality that metallic supply-demand value determines. So, the core underlying contention here, is between government (with banks and monopoly industrialists in supportive collusion) exercising Mercantilist (or, if ‘necessary’ Feudalist) control over commerce, or a Capitalist Free Market, effectively supplanting that ‘eminence’.

    Consequently, petitioning government or its functionary agents to fully disclose the chicanery inimical to their very survival (and subsequent ‘benefit’ their survival yields to their sycophants) is misdirected and futile, if I can be blunt in my opinion. The more grand and effective challenge to take up is, rather, elucidation on the truly revolutionary capacity of Capitalist Social Order to liberate humanity from the self-centered capriciousness (devolving into horrifically inhumane bestiality at critical junctures) of this relatively tiny sect of politicos in our world.

    The further Capitalist Social Order is perfected in human existence, the more ‘government’ (starkly distinguished from governance) is supplanted. Thus, paper-based, political ‘currency’ is absolutely essential in countervailing its advancement. No government wants Capitalism to expand, so the challenge of real, objective metallic valuation is an existential threat! When metals (particularly gold and silver and copper) reach their true rational inter-relationship in juxtaposition against the grand scale of goods-at-market, political ‘money’ itself will be supplanted.

    As all this pontification relates to Mr. Butler’s article … it’s a case of ‘be careful of what you wish for, because you may get it’. To seek a proper value for silver, defined in banknotes, is to utterly destroy the viability of banknotes. Consequently, all ‘profit’ so sought, evaporates into the imaginative dimension from which it came. Railing for honest, full disclosure in the COMEX (or ANY metals ‘exchange’) is tantamount to railing for every government on the planet to relinquish all their control of commerce, back into the direct hands of their Peoples. I’d humbly suggest, then, that Mr. Butler ‘cut to the chase’ and ride under the flag of Honest Money.
     

  8. IT’S A BRAVE MOVE FORWARD! BY A PERSISTANT MAN..HERO

  9. Anyone that stands against the Luciferian Satanist Vampires is a HERO..IMO

  10. I know Ted is doing the right thing by letting  TPTB know that we are not stupid. They will keep manipulating because they can.Their hope is that the newer investor will get bored and not bother buying metals anymore because they dont go up quickly enough.

  11. Sometimes being polite is annoying.
     

  12. I see Ted Butler’s opinion changing.  He’s one of the good guys who has been fighting longer than most anyone.  So, don’t knock him.  Whereas he formerly tried to work within the system I believe he has come to realize they are all a criminal family.  Butler has laid the groundwork.  But, as others have pointed out he’s just one man and he is a gentleman.  Now it’s time for the masses like us to get involved.  Ten thousand ants can bring down a lion.  Our strength is in our numbers.  It’s coming.  I see the tide shifting our way.

  13. Let the record show that Mr. Butler has been right all along and nothing was done. Why has nothing been done is the question…I think here is where we delve into conspiracy, but TPTB know something, perhaps civilization altering, is coming and won’t have to answer for their crimes, but you can only write the narrative for so long.

  14. Problem is only about 2% of the american public is buying precious metals according to one report I read. That leaves 98% of the sheeple not caring one way or the other. So nothing will change until the dollar explodes.

  15. I wish that the manipulation could stay longer so that this way, I can accumulate some physical silver very cheaply. I only have a few ounces. :(

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