Since we received reports from the CFTC that market players have made "repeated" and "fraudulent efforts to persuade and deviously control" silver prices, we have heard that HSBC Holdings Plc and JPMorgan Chase & Co. are facing an investor's lawsuit of placing "spoof" trading orders to manipulate silver futures and options prices in violation of U.S. antitrust law. The investor, Peter Laskaris, alleges that starting in March 2008, the banks colluded to suppress silver futures so that call options, or the right to buy, would decline, and put options for the right to sell would increase, according to the complaint filed late last week in federal court in Manhattan. The collusion was also intended to maintain prices at levels at which some options would expire as worthless.
WHAT SHOULD WE BE GETTING FROM OUR BANKS ?
Once upon a time the banks had a limited influence on our lives. If you needed a loan they were there to give it. They looked after your money, for a price, but most day to day transactions did not involve a bank, just cash. The same is still true in the underdeveloped world now. But in the developed world the banks and the banking system are part of every single aspect of our financial lives. They are the veins and arteries of the financial body, the economy. While they are healthy and supportive of the body the heart of the central bank and the government can work well. But when those veins and arteries harden, the entire body and heart have all-threatening problems. And the banking system seemed to be in good moral health until the credit crunch of 2007. Government stepped in to save the entire financial system by saving the banking system. (more)
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