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Bart Chilton Urges Corrupt CFTC Colleagues To Actually Act On Behalf Of Investor Protection For Once, Move On Position Limits
Even as the CFTC is doing its best to postpone indefinitely (and hopefully infinitely) a review of limit speculative positions held by commodity traders (read JPM), commissioner Bart Chilton, who really should shut up if he knows what is good for him, told the CFTC to instead act quickly and actually do something right for investor protection for once (not necessarily in those words). From Reuters: "The regulator, which has a mid-January deadline, has been pushing back
the date to propose new speculative limits in energy and metals markets,
and so far has not given a time for when it will be introduced. This proposal should be discussed on December 9th at the commission's
next meeting; a proposal should be put out for public comment as soon as
possible; and we should commit to meeting the statutory deadline," said
Bart Chilton, a CFTC commissioner. "We can always find excuses, justifications, or pretexts for inaction --
this rule is too important to let any of those get in the way of
fulfilling our statutory responsibilities, and keeping our promise." The problem is that none of "those" are standing in the way of fulfilling statutory responsibilities: there are only two things that are standing in the way, and they are called Jamie Dimon and Blythe Masters.
More from Reuters:
The Wall Street reform law gives the CFTC power to impose position limits for all commodities across exchange-traded and over-the-counter markets.
It gave the CFTC 180 days to have the new rule in place for energy and metals markets, and 270 days for limits in agricultural markets.
The CFTC has grappled with how to police and set the limits, part of a broader push by the agency to implement rules to overhaul the $600 trillion over-the-counter swaps market under the Dodd-Frank financial law enacted in July.
Fellow CFTC commissioners Scott O'Malia and Jill Sommers were less optimistic about meeting the January deadline.
"At this point we're not going to make the deadline," Sommers told Reuters on Wednesday. "I don't see how we make the January deadline."
And just like yesterday the SEC blamed its exorbitant porn subscription charges as taking away from its $1.2 billion budget, and making it impossible for the world's most corrupt agency to do its job, we expect the second most corrupt and inefficient bureaucracy (headed by a former Goldman partner no less), to soon scream bloody murder that it is incapable of doing its criminal job with only a few hundred million taxpayer dollars in its coffers.
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bart's a lonely guy at the CTFC.....you have to wonder, i mean really...do they give the rest of the CTFC the heads up when they stage a silver attack? its that bad...
it really is. love to see the CTFC individual trading accounts for yesterday....
I would like to see a FOI request for all correspondance between the CFTC and certain banks.
"bart's a lonely guy"
yeah, what's that adage? if a tree falls in the forest does it make a sound? or something like that
I emailed Bart a while back and he actually sent a return email...not a form letter, just a pithy "thanks much, B" email.
I like that
The CTFC is a joke. There has been a 20-year promise to not find anyone guilty of manipulation. Here's the Honorable CTFC judge George Painter spilling the beans:
http://www.neuralnetwriter.cylo42.com/node/3721
http://www.enterprisecorruption.com/wp-content/uploads/2010/08/CFTC-Real...
^^^^^^^ how do I insert images? the img shows when I edit but not when i post.
No images for non-contributors
Anyone care to speculate on what happens to PM prices the day position limits are finally announced?
I read somewhere Dec.16 is a possible date
Any takers?
Yes, PM prices fall. Because meaningful limits will only be imposed on longs.
Here are the emails of the 3 offending Commisioners. Be sure to email them and let them know what you think of their performance as civil servants.
jsommers@cftc.gov ; MDunn@cftc.gov ; Somalia@cftc.gov
But if they started doing anything sincere and credible about rigged commodity markets, how would the insiders keep their income flowing?
Wait, someone is suggesting that commodity pricing should be based on true supply-demand equilibrium?
THE HORRORS!!!
Central bankers and sovereigns will NEVER let this happen for the simple reason it would destroy their regimented control over their societies as it would cause fiat currency to become worthless.
Without the dope of what is perceived as 'credit' through fiat, what use would the people have then for the central banksters and their masters?
If 'ol Bart has visited Sweden at any point, I hope he remembered to use a condom. Otherwise there may be some unpleasantness involving Interpol coming his way soon.
It's a good thing he didn't litter or jaywalk, or he'd REALLY be in trouble.
+6 mil
Ole Bart might want to start soaking his mail and hire someone to start his car.
Naa... just keep BUYING PHYSICAL SILVER ZH'ers.
assange meet chilton
TD, I appreciate that it's in humor to keep calling out Masters as the villain behind JPM's questionable silver position, but has she done anything specific recently to be worth of getting frequently slammed in every zh post?
Is her only crime that she's now heading a desk that's been up to no good for the last several years?
Her Job, everyday, 24/7, 365.
Apart from being either an active participant in her department's criminal activities in the PM markets or being criminally negligent in failing to notice and prevent her team engaging in these activities on her watch?
No, not really.
Fair enough.
In Gillian Tett's Fool's Gold, Masters is made out to have helped pioneer the CDS and MBS stuff at JPM, but they were relatively prudent in how is was initially deployed. It was a lot of the other banks (such as Citi) that first started to use mortgage-backed securitization recklessly (which is why JPM fared better than others in 07-08). In fact, it was Masters and couple others at JPM that correctly understood it was a very dangerous game to retain ownership of super-senior MBS tranches (prompting them to offload the super-senior tranches to AIG etc), despite the fact that on paper, the probability of default was on the order of a several+ sigma event.
One thing for sure is the case: Masters et al. are a smart smart bunch. If there's a way out of their silver shorts without scray losses, they'll find it. That said, I hope JPM fries like a fucking egg.
FD: I've had a large position in silver bullion for two years.
"despite the fact that on paper, the probability of default was on the order of a several+ sigma event."
Whenever the quants had an issue with their risk profiles, they simply changed the model.
Sure of course, but the key was the people like Masters who figured out, before the quants, that the models were flawed.
...criminals...whether stealing a candy bar or tons in gold bars are smart indeed when they are able to get away with thier crimes...the admiration they receive, the praise, the legends of greed that make ones eyes glare in wonder, amazement, and jealousy...until they get caught...then they become the stupid moron that should have known better and those admirations turn to ridicule and contempt...fight on gladiators, the super bowl crowd is never satisfied.
and for what its worth:
thank you, again, mr. chilton.
Blythe's choosing to intentionally ignore, or her inability or unwillingness to see the nefarious, evil and unintended consequences of creating CDS as a financial product class, puts her in the league of the largest financial terrorists and criminal to have ever roamed the Earth.
If you summon or conjure a demon, are you not responsible for its actions?
Blythe = Pandora. Our hope is in a return to honest money, and the end of fraudulent finance, which she is perpetuating.
NEVER summon something that you can't put back down! -- H.P. Lovecraft
Credit Default Swaps are one of the most corrupt financial instruments ever foisted on the backs of the American Taxpayer. Without our massive bailout the acronym CDS would be relegated to the dust bin of history.
CDSs are insane and a giant scam. They only work if there's a bailout behind them. If there wasn't then they would take out Banks like dominos because they all write them to each other. Is Blythe Masters smart for coming up with such a flawed idea? No, of course not. A intelligent person would have forsaw the mathematical back-hole the CDS represent. She just smart enough to get herself in trouble and that is exactly what she did.
She did not end up where she is at with a BA and 20 years of experience for nothing. Just cause she's a women does not me she's dumb. Do you think TBTF executives got where they are for looking after the little people?
How 'bout this: imagine JPM's silver short hedged with AIG OTC derviatives contacts -- and you know where that ends up. Could be with the 1st Bank of Bumblefuck . . . or B of A, etc. Through the OTC contract you end up with a sovereign covering your position. Sweet, eh?
Well she did sorta invent the CDS. She is like mighty Shiva, Death the Shatterer of Worlds. Or in this case bankrupter of worlds. Personally I'm all for her running the desk, get the prices down honey! Daddy is still a buyer!
"Don't panic! .... Competitors are “scared shitless of us...They’d better be, because this is a platform that’s going to win ... Every one of you needs to get away from ...... the losses that we’ve encountered, the nonsense that’s been in the newspapers ... remember that you work for a business that is one of the boldest and gutsiest and ballsiest businesses...”
Blythe Masters, to JPM commodities team, August 3, 2010
Blythe Masters, inventor of CDS, aka "weapons of mass economic destruction"
Wow, I wasn't aware of those kinds of quotes.
To hell with her then.
...ahh yes, i remember that speaker phone cheerleading to the confused team of coffee drinkers...notice the date there? and then silver surged...lol!
I'll come right out and say it: Blythe, you've got no balls!!
"Balls!" said the Queen, "If I had two, I'd be King!"
She's one of the good Germans, is she? Just following orders? Doin her job?
1400, 1410, 1420...
How about 29.348, a new high!
Maybe this will silence Li'l Joey, Red Neck and all the other Turd bashers for a day?
I doubt it....they'll find fault with something. It won't make any sense, but that's another story.
Thanks, BoP.
I actually enjoy the bashing. It's better than being ignored. I learned a long time ago that strong opinions will always bring dissent so I prefer to just roll with the punches.
And have you noticed, BofP, how all the "Turd bashers" (funny phrase!) are getting weaker and (even) more laughable in their already pathetic arguments against holding the precious metals? At least the Prophet of Fiat, JohnnyBravo (may torment be upon him), occasionally had SOME small semblance of logic behind his anti-gold rantings, as disingenuous and selective as they may have been. Most of these latter-day junior Nadlers come to the fight with all the intellectual prowess of a toaster. It's almost regrettable to repeatedly have to kick the puppy, even if it is an evil and rabid puppy.
Palladium way above SMA 200
ahhhhhhhhhhhhhhhhhhhh....after all these years, its nice to see JPM get it up its old wazuuuuu this morning...
oh, Blythe? I'm going to see my silver on my deathbed........not to you in one of your "attacks" or as the CTFC would like we peasants to believe, the ups and "downs" of a free market....
he knows there's fraud & manipulation taking place and that the rest of the commisioners r banker bitches...he should quit and then drop all the dimes on those mother fuckers...why remain part of the criminal element????
Who's he gonna call, Eric Holder: the useless? The FBI, which has been transposed into MIA?
the market is back to trading along the intra-day moves of the EUR-USD. nonfarm payrolls is USD bearish, so that must be stock market bullish, or so the trading goes.
if we manage to hold minimal losses or even manage (gasp) gains on a huge miss in the biggest market moving release, then watch out above.
Bad Jobs Report = Fed Prints More = Dollar Weakness = Higher Stock Market
= Higher Gold/Silver
don't leave the PM holders out. i would like some more PMs but it is too dangerous to chase performance that we've seen, even though we could easily be entering the exponential phase here soon.
i think the USD holding the 50 day MA could give PMs a needed correction over the next couple months. gold has shown a couple orderly 2 month corrections after peaking in the last couple years, i expect we'll see something similar starting soon.
To envisage that scenario is to presume that the current slow-motion collapses of our financial and monetary systems are about to end, with solutions to their many faults (and immorality) to be put in place in the near future. What do you possibly see happening today that could lead one to such a conclusion?
sorry, the second half of the sentence was referring to precious metals, not the stock market. i think PMs could enter the exponential phase here soon, not stocks.
Your implication was clear, and I understood you were referring to the precious metals in your "exponential phase here soon" phrase. So I will ask again, what permanent fixes to our financial and monetary woes (not to mention outrages, thefts and rapes) do you see being imminently instituted?
Price controls? Canning ALL unicorn farts?
Chilton is watching porn along with JPM FED SEC CFTC and uncle Ben.
Wash your mouth.
Chilton is a prince amoung pip squeaks.
Position limits? Really?
Let's see, I want to take a $1 Trillion position but oh no, there is a position limit.
Create new legal entity. Fund it. There now, two $500 B positions, no position limit violation.
There is no limit to the stupidity of government.
Solution?
Do not break trades. Ever.
Do not bail out bankrupts. Ever.
The invisible hand will cure these evils if intervention stops.
Just eliminate the fraud and counterfeiting. The size of the markets will decline by 90% and it will become boring.
That is the best solution.
The same applies to the stock market. They best way to fix abuse is to make it boring and unprofitable.
Touch me and my wikileaks.
Awesome!!!!
Is it possible that Chilton is the controlled opposition?
methinks so too
I think Bart is talking a lot on a regular basis to try to get the players to play nice and unwind
But no real action is ever forthcoming unless the SHTF, and then, it will just be an individual
If it is to continue, Bart will retire and be replaced by a stooge who will look the other way
Forget position limits. Just raise margins to 50% for non-bonafide hedgers.
If they were serious about cracking down then I don't think they would have people with conflicting interests working for them. This is a protection scheme for big banks and big trading firms much like the SEC and everyother gov. agency. The revolving door.
if the USD manages to sink back to its 50 day MA, that'll be a good place to get in long UUP for a trade. in the last ride up in the USD, the 50 day MA held 3 times in Jan, Mar, Apr.
Bear in mind that JPM's short position in silver is going to be considerably less now than it was before. The question raised here is whether the Govt. should manage the price of silver & gold..which is really going to be some achievement with the physical supplies as they are. As a result, JPM couldn't really enforce a suppression scheme much more into the future - and JPM does own the CTFC - so, maybe, this is JPM offering to throw in the towel, exposing FED and by extension White House, policy...unless Fraudclosure were to go away?
How is this for an idea? Trading is limited to ONLY THE CONTRACTS THAT ACTUALLY PHYSICALLY EXIST!!
All naked shorting of commodity contracts would be outlawed and considered counterfeiting and fraud. Banks and all other entities/traders would be prevented from collecting money for something that they have no ability or intention of ever delivering on.
That would probably eliminate the need for position limits... as long as anti-trust laws are in effect... which could be handled in common law courts (if they ever return).
If the banks/traders want to set up side casinos that bet against each other on the price of things (understanding full well that the price of the bets will be completely controlled by the party you are betting against ... which is nothing different than today), then great! Suckers can throw away their money to banks as long as it does not affect the actual physical commodities.
Hey Gensler, you will never get that 'Squid Slime' off until you do something courageous for the American People. Are you smooth in the front like a Ken Doll or what? Grow some balls!
Chilton is starting to sound like Brooksley Born, with a manly voice, of course.
Using force to limit positions... hmm, sounds like the Bush Principle: destroying the free market to keep it free!
I thought Bush was the one that deregulated everything and caused excessive risk taking?
You figure we should just let the good folks at JPM police themselves? Thats your free market? Sounds kind of Psycho to me
just re-tested the day's low in SPY at 122.11. it held for now. looks like a boring range-bound trade today.
A lot of you are very perceptive and intelligent, but you may be missing the big picture. The whole silver/gold ponzi, IMO was invented to disguise the real status of bullion stocks out there. Is there any gold in Fort Knox? Probably not. The gold in the NYFED vaults? Probably assigned to dozens of banks in leasing arrangements with the paper many times that of the actual physical. Harvey Organ, in yesterday's blog noted that the Germans have apparently "lent" the FED a majority of their gold reserves and apparently, such reserves no longer exist on German soil or in German banks. What has not been foreseen in the Asian demand, which will go geometric within the next 3 years.
if we don't have any physical in Fort Knox, we can always take over the area beneath downtown Zurich. lots of treasure down there.
Another CYA in a long list of upcoming CYAs.
I wonder how long it will be before we read about Bart having a fatal "accident" while trimming his hedges?
Methinks that Chilton is all bark knowning that the CFTC has no desire to bite.
Best silver weekly close since 8/14/80, ho-hum. Best weekly ever for gold.
Not in purchasing power it hasn't.
The exits from the fiat financial system are through two gates - one gold, one silver. As long as TPTB can keep the location of those gates secret from 99.5% of the herd there is no chance the herd will escape. Not that they are thinking of escape yet - government cheese, yum. However, the world is getting a whole lot spookier and once the shadow of the black swan appears overhead a lot of the sheep are going to see it is actually a predator and will start running around looking for someplace they can escape to and be safe. Ta da - check out the gold and sliver gates my bleeting friends. Head for them - all at once. Run - this looks Baaaaaddd. Leave the cheese and run!
That's no swan, it's a black Dragon (they like Gold ya know!)
As anybody considered that Chilton, while saying all the right things, could just be a plant to placate all the silver bulls? He's a voice, but a lone voice. Kinda like Brooksley Born when her warnings of derivatives were drowned out by Greenspan, Rubin and Summers.
Ode To Sir Eric Holder on HOW NOT TO DO IT
Containing the whole Science of Government:The Circumlocution Office was (as everybody knows without being
told) the most important Department under Government. No public
business of any kind could possibly be done at any time without the
acquiescence of the Circumlocution Office. Its finger was in the
largest public pie, and in the smallest public tart. It was
equally impossible to do the plainest right and to undo the
plainest wrong without the express authority of the Circumlocution
Office. ... This glorious establishment had been early in the field, when the
one sublime principle involving the difficult art of governing a
country, was first distinctly revealed to statesmen. It had been
foremost to study that bright revelation and to carry its shining
influence through the whole of the official proceedings. Whatever
was required to be done, the Circumlocution Office was beforehand
with all the public departments in the art of perceiving--HOW NOT TO DO IT. from Chas. Dickens' Little Dorrit, Ch. 10
Gotta say, Tyler, That Ted Butler has said some really good things about Gensler.
DavidC
"The smartest man in any room" he said. I believe the consumate politico Gensler is keeping his cards close to his chest, navigating the Byzatine labarinth of the CFTC, to systematically bring about effective reform.