Rebel of the Week: Whistle Blower, TAKE 2!
GATA's recent success in filing a lawsuit against JP Morgan for alleged manipulation in the silver market has lead us to name our Rebel of the Week: The Whistle Blower, Andrew Maguire. This London based trader was savvy enough in his experience with the intimate silver market to pin point a pattern of behavior leading to the belief that a single entity was controlling the market. That single entity is believed to be JP Morgan. Another law suit has been pursued with HBSC Bank as well for similar reasons.
Maguire sent 6 e-mails to Eliud Ramirez, a senior investigator for the Enforcement Division of the Commodities Futures Trading Commission (CTFC) last year. Surprisingly, his very detailed and well articulated messages were met with brief response such as "thank you for your communication".
"Thank you for your communication"?!?!?! This is breaking news that could very well change the commodity market as we know it, and Ramirez approaches the well informed trader with little to no concern. When Maguire did not find the assistance he was looking for through the CTFC, he brought his information and concern to GATA (Gold Anti-Trust Association) who is now pursuing the lawsuit against the two banks alleging hundreds of millions of dollars worth of silver price manipulation.*
This news is not new, Maguire's initial contact with the CFTC was last fall. GATA Chairman Bill Murphy gives a very speedy run down of the events leading up to this lawsuit. Silver Circle recently spoke with Bill Murphy at the Silver Summit, and he is nothing short of ecstatic to finally have a well constructed thesis along with evidence to take down, what GATA sees, as the enemy they've been chasing for the last 10 years. In an interview earlier this year our ROTW Andrew Maguire shared with the New York Post, his thesis:
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer."
In layman's terms, JP Morgan is acting like a fractional reserve bank of precious metals and Maguire's London based market is believed to hold a gold reserve of 100-1. So, if 1,000 traders wanted their physical gold at once, only 10 could receive it. Which leads us to Maguire's clear cut way of thinking:
"If you sell something you do not own, then that is fraud."
Congratulations Andrew Maguire for being an outstanding citizen of not only England, but also the world. The effects of this news will be monumental** in the coming year and beyond. Best of luck to GATA as well while pursuing this fraudulent behavior and their bold journey to justice.
*It is speculated that there was an attempt to "take out" Maguire after he and his wife were involved in a bizarre car accident shortly after going public with his information. We aren't much for conspiracy theories over here...unless it's film related...however, I am having a hard time finding the name of the driver who hit their car along with two others as he escaped the scene before later being "caught" by the police. If you have information on this reckless driver, please leave it here in the comment area.
**Benefits to this news is potentially clarifying the "true" prices of the commodities market, if left to perform without manipulation it may surprise us all. Thanks Andrew Maguire you truly are a Rebel of the Week.