Goldman Caught Manipulating Brent/WTI Spread: Penalty: $40,340

Tyler Durden's picture

For all those who believed that it was only JP Morgan who is manipulating the Brent-WTI spread, we regretfully have to inform you that the squid is once again front and center, having now been caught red-handed by none other than the ICE exchange, aka the home of Brent trading. From a just disclosed complaint: "On 28 January 2011 the Exchange’s monitoring detected six notable “price spikes” in the April11 Brent/WTI spread, between 14:26 hours and 14:31 hours UK time. These were investigated and found to be the result of a limit order and several large market orders placed in quick succession by a GSF trader...In relation to the events described above, the Exchange alleged that GSF had breached the following Rule: "It shall be an offence for a trader or Member to engage in disorderly trading whether by high or low ticking, aggressive bidding or offering, or otherwise." The Exchange recommended to the Committee that summary disciplinary proceedings be commenced in regard to the above mentioned allegations. The Committee subsequently considered the matter in accordance with Summary Enforcement Rule E.7...The Committee considered the behaviour of GSF and its client to be a clear case of disorderly trading, in that the  distorting price impact of the placement of such large orders in close proximity was not considered." But don't worry: the ICE naturally had to sugar coat its findings: "Having examined the instant messenger logs of the communication between the GSF trader and their client, the Committee found no evidence of intentional manipulation of the market; nevertheless it considered the breach to be of a serious nature." Well, thank god that all market manipulation occurs via perpetually recorded instant messaging. It would be inconceivable that Goldman and its "client" may have found a different way to hatch plans to defraud investors than one which involves on the record messages.. Simply inconceivable... And preposterous.

Bottom line: the fine for Goldman Sachs: £25,000

And now we return to your regularly scheduled market manipulation farce courtesy of Goldman and the central banks.

Full ICE circular (link)

ICE Goldman Manipulation

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TooBearish's picture

Fukking brilliant

Hugh G Rection's picture

In other news...

 

"3 masked bandits armed with assault rifles stormed a major bank branch downtown today, making off with $12.3 million in large bills.  They were pursued and captured by responding police, and subsequently fined $50..... It's nice to see the justice system work so efficiently, back to you Craig."

Lieutenant Dan's picture

Probably cost then more to investigate than the value of the fine they received.

Manthong's picture

This just means a slightly less desirable vintage at squid dinner tonight.

ZeroPower's picture

Or, more interestingly, not even the price of a full contract LOL

Hugh G Rection's picture

ZP-

 

Forgot to tell you, congrats on the Stanley Cup. Go Canucks!

ZeroPower's picture

Thank you, alas it was a tough game, but glad we prevailed and did our city and fans proud.

http://i.imgur.com/le7kn.jpg

augie's picture

Thank god your team prevailed, less Vancouver be burned to the ground. 

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

riley martini's picture

  The Banksters make me cheer for honest bank robbers who usually steal just enough to get by . You never hear of honest bank robber proudly stealing from widows and orphans .  The  degenarate supporter of Fascism would say we are just jealous because we wern't stealing from widows and orphans. The virtues of Fascism revealed.

Hugh G Rection's picture

I agreed the first 18 times.

 

30s are here again. Alas, the second Golden Age of Bank Robbery!

 

case study- Wheaton Bandit

Police seek help in capturing bank robber

Last Updated: May 27, 2011 02:28AM

As the deadline to charge one of the most prolific serial bank robbers in Chicago area history approaches, police again are asking for help in identifying the man who robbed a number of area banks including one in Naperville.

<snip>

The statute of limitations on bank robbery, which is a federal felony offense, is just five years. Given that the last robbery the Wheaton Bandit is suspected of committing was on Dec. 7, 2006, at the Glen Ellyn Bank and Trust, he must be identified and charged by Dec. 7 of this year.
Anyone with information on the bandit should call the FBI at 312-421-6700.

also see- Carl Gugasian

http://en.wikipedia.org/wiki/Carl_Gugasian

TheGoodDoctor's picture

That's because the armed bandits were actually bankers.

firstdivision's picture

If the ticks don't fit, one must acquit.

augie's picture

can't we all just go long? 

mayhem_korner's picture

the Committee found no evidence of intentional manipulation of the market; nevertheless it considered the breach to be of a serious nature

Unintentional manipulation. Morality is long into Chapter 7...

element115's picture

Oh shit! $40k. Man, that has got to hurt! Does this mean no dessert for lunch today?

Kelley's picture

In unrelated news, a couple was fined $90,000 by the USDA for raising and selling cute bunnies in Ohio. If the couple fails to pay, the fines will jump to $4 million. The couple had sold about $10,000 worth of bunnies.

The investigator and others had said their bunnies were the healthiest they had seen.

There is no word on whether the couple intentionally manipulated the cute bunny market or not.

swissinv's picture

jesus, for that fine I start to manipulate the Brent/WTI spread as well

Don Quixotic's picture

Can anyone explain wtf happened to Silver when it opened for trading last night?
http://www.kitco.com/charts/livesilver.html

Look between 18:00 and 20:00 last night. WTF is that?

FunkyMonkeyBoy's picture

Looks like a bad feed at kitco, i was watching the live price at that time and it didn't hit the prices kitco's chart suggests.

Hugh G Rection's picture

Looks like Michael J Fox was running the computers.

Dental Floss Tycoon's picture

 

Noticed that also.  A new algo maybe.

Can someone check what the bid ask spread was doing?

Could it be that someone was manipulating the market.  Don't they know they can be fined?

Don Quixotic's picture

I wasn't watching the feed live, so I just figured it was another GSF trader with no intent to manipulate the market. Whether kitco, GSF, or JP I suspect there's a fat finger here somewhere.

PaperBear's picture

Keep stacking the physical silver.

All this manipulation will come to bite the manipulators where it hurts and bite them hard.

curbyourrisk's picture

As long as JPMorgan is the one that is short Silver.....don;t expect to win.

SilverDosed's picture

There's only one solution, and it involves a rope and a tree, NYC window would work well too. 25k fine... lulz... how much did they actually make from the trade?

Hugh G Rection's picture

hmm, rope and a tree?  I was thinking an arena filled with banksters and starved lions, sharpened poles and impalement, and gladiatorial deathmatch tournaments, with the last standing pig man rewarded with a trip to the guillotine.  

 

All games would be televised of course, on pay per view, with the profits going to pay down the deficit.

JW n FL's picture

Great another JP Shield!!

 

I Love how Goldman is NOTHING more than the whipping post for the idiot sheep / retail crowd and JP gets a fucking pass ALL! DAY!!, Every-Fucking-Day form EVERYONE!

Franken_Stein's picture

 

Not from me.

I called Blankfein & Dimon pathetic carbohydrate units who better should never have been born.

Does it get any clearer ?

 

Prometheus418's picture

Nope.

I'm heading to court in an hour and a half to see if I can fry up one of the Morgue's littler tenticles and make some calimari for lunch.

Odds are, we're going to get hammered, but there's a chance, and I'm going to fight until I fall from blood loss.

Jim in MN's picture

Best of luck, and watch those appeals...someone 'up there' likes their squid live and well-fed.

cahadjis's picture

Good luck Prometheus, let us know what happened!

Jack Napier's picture

At best they'll be held partially accountable for $138 million in losses. It's good to see some attempt at justice, but it won't make a dent. Criminal prosecution is the only thing that would brighten my day.

riley martini's picture

 Goldman is the most proflicate Fascist criminals. The 225,000 signature petition that forced the show hearing revieled enough to show the bdepth of Goldmans criminal operation and those in government involved that were involved . The White House , Treasurie , Cabinet Member that were choosen by Goldman as payment for particapating in the fraud against Pensions,Muni Governments and School Districs ,Charities . Plus the foreign criminals Goldman used to defraud the American People " loose Hedge fund managers" fron Germany. The Fascist controlled media that tried to cover up for their Fascist masters. It was the petition and Rolling Stones that shined some light in the eyes of the sheep. Goldman has teamed up with foreign crinminals to ripp off Americans  too many times for a comment  ,You need an enclyopedia .

Version 7's picture

Not to worry, the anointed (aka Lloyd Blankfein) will take care of the small problem.

JP Morgan Manipulating Brent/WTI Spread? They have specialized in silver.