Bix Weir has sent another scathing open letter to the CFTC Commissioner's regarding yesterday's announcement of the CFTC fining JP Morgan $20 million for unlawfully handling customer segregated funds (aka illegal rehypothecation of segregated client funds) from 2006-2008.
OPEN LETTER TO THE CFTC
April 5, 2012
Commodities Futures Trading Commission
3 Lafayette Center
1155 21st St. NW Washington, DC 50581
Re: Flawed Investigations and Breaking The Law
ATTENTION CFTC COMMISSIONERS AND STAFF:
I have written the CFTC many letters attempting to explain the obvious ongoing manipulation in the silver market because you clearly could not figure this out on your own. In each one of these letters I laid out the case of who was doing it, how they were doing it and why as well as a way to fix the situation. Yesterday the CFTC announced it has fined JP Morgan $20M for "Unlawfully handling Customer Segregated Funds"...
CFTC Orders JPMorgan Chase Bank, N.A. to Pay a $20 Million Civil Monetary Penalty to Settle CFTC Charges of Unlawfully Handling Customer Segregated Funds
This letter was intended to be a congratulatory letter to the CFTC for FINALLY going after JP Morgan but upon reading the order again I have changed my position. Here's why...
"CFTC order finds that from at least November 2006 to September 2008..."
"As of November 17, 2006, JPMorgan included LBI's customer segregated funds in its calculation of LBI's net free equity, even though these funds belonged to LBI's customers, not to LBI, the order also finds."
"...on September 15, 2008, Lehman Brothers Holding, Inc. filed for bankruptcy. Two days later, LBI requested that JPMorgan release LBI's customers' segregated funds. JPMorgan improperly declined the request"
ARE YOU KIDDING ME?! The CFTC has sat on this obvious illegal activity for over 4 years without doing anything about it?! WHAT WERE YOU DOING FOR FOUR YEARS?! In the meantime the customers of MF Global had their lives destroyed by the very actions that JP Morgan had taken years earlier! Who really deserves the blame - the criminals or the regulators who didn't do their jobs?
SHAME ON YOU FOR BEING COMPLETELY INCOMPETENT!
No, this is beyond incompetence...this is criminal neglect by the CFTC and you should all be sent to jail for colluding in the corruption!
Read your own summary paragraph in the press release...
"The laws applying to customer segregated accounts impose critical restrictions on how financial institutions can treat customer funds, and prohibit these institutions from standing in the way of immediate withdrawal," said David Meister, the Director of the CFTC's Division of Enforcement. "As should be crystal clear, these laws must be strictly observed at all times, whether the markets are calm or in crisis."
That "AS SHOULD BE CRYSTAL CLEAR" comment incriminates your behavior. It IS crystal clear but the CFTC purposefully decided to delay this enforcement action for four years! The MF Global debacle was not only avoidable it was a direct result of the CFTC's decision not to ENFORCE any laws related to large, "too big to fail", banking interests.
As a matter of fact, an ex-Director of the CFTC Enforcement Division, Dennis Klejna, was the principle approver of the transfer of segregated customer funds from MF Global to JP Morgan. And the icing on the corrupt cake is that he had already been found "guilty without pleading guilt" in an almost identical fraud at REFCO!
JP Morgan Lawyer Exposes Corruption at JPM, MF Global & the CFTC
So what now? The CFTC has clearly demonstrated that there will be no regulations enforced against large banks in the United States. All there is at the CFTC are incompetent bureaucrats that shuffle behind their bankster bosses creating new laws and rules after the fact and never to be enforced.
The next debacle is going to be in the Silver Market. WE ALL WARNED YOU YEARS AGO! Go ahead and shut your eyes, ears and mouths to the silver manipulation but YOU will be shown as fools once again.
Our Founding Fathers are rolling in their graves.
Signed...One Disgusted Citizen -
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From Bix' Road to Roota