CTFC concludes silver manipulation probe with zero results
Since the fall of 2008, government officials in the U.S. Commodity Futures Trading Commission (CFTC) have been investigating claims of manipulation in silver markets. Much of the information regarding the probe has been shrouded in secret, although partial analysis from independent bloggers suggests that large banks such as JPMorgan Chase & Co and HSBC were being checked for possible unlawful actions in the market. Yet this week, the CFTC announced that it was closing its investigation, citing a lack of conclusive evidence meriting an "enforcement action."
According to Reuters, both JPMorgan and HSBC fought the allegations, citing the economic turbulence at the time as a possible reason for suspicious price shifts in the market. Despite the fact that the investigation has been open since 2008, it wasn't until three years ago that litigation was first filed in federal court against the American bank, while HSBC was dropped without explanation. In March of this year, JPMorgan successfully had the bid dropped.
In a statement, the CFTC acknowledged that it lacked recourse to file charges against JPMorgan or other banks, and that it was shuttering the investigation as it hadn't proved effective despite nearly six years of ongoing operation.
"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," the CFTC said.
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