Goldfinger redux


A London-based precious metal trader who late last week blew the whistle on JPMorgan’s commodity-trading manipulation within the silver and gold markets has been hospitalized along with his wife in a freak car accident over the weekend reminiscent of scene out of James Bond film.

Andrew T. Maguire, who for more than six months has been talking with CFTC regulators on how JPMorgan’s trading activity within the silver and gold markets was suppressing prices, was driving with his wife at the time that a car came out of a side street and broadsided their vehicle. The car then  hit two more cars and sent pedestrians fleeing in an attempted to get away. London police nabbed the driver in a wild car chase involving helicopters and patrol cars.

The London police have no released the name of the driver.

Maguire’s name came to light on Thursday as the US Commodity Futures Trading Commission was holding hearings on limiting gold and silver positions by large market participants. The information became public when released by Adrian Douglas, Director of Gold Antitrust Action committee (GATA), who was contacted by Maguire. GATA has been publically working to bring transparency to the commodity exchanges.

In e-mail exchanges with CFTC commissioner Bart Chilton and CFTC Enforcement Division chief Eliud Ramirez from earlier this year, Maguire — who is a metals trader on the London Bullion Market Association, an over the counter exchange trading gold and silver — laid out the action within the metals market prior to the February non-farm payroll report was released.

Maguire then followed up with another e-mail laying out just what occurred that morning to both men. In the missive Maguire wrote: “I hope you took note of how and who added the short sales (I certainly have a copy) and I am certain you will find it is the same concentrated shorts who have been in full control since JPM took over the Bear Stearns position.”

Maguire went on to write, “It is common knowledge here in London among the metals traders that it is JPM’s [JPMorgan] intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits.”

The March discussions Maguire references were the CFTC hearings on large positions within the metals market by Wall Street banks, where the banks are able to suppress prices by creating large short positions, even when the release of data should drive prices higher.

JPMorgan came about its large metals positions when it acquired Bear Stearns in 2008.

In an e-mail to Ramirez on Feb. 9th Maguire writes, “The signals I identified ahead of the intended short selling event (the jobs report on Feb 5) were clear. The “live” action I sent you after the trigger event predicting the next imminent move also played out within minutes and exactly as I outlined. Surely you must at least be somewhat mystified that a market move could be forecast with such accuracy if it was free trading.”

The only reply Maguire released from the CFTC was from the enforcement chief Ramirez who wrote: “Good afternoon, Mr. Maguire, I have received and reviewed your e-mail communications. Thank you so very much for your observations.”

Maguire and his wife were released from the hospital yesterday. London police will not comment on the ongoing accident investigation.

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