Is JPM Metals "Whistleblower" Letter A Complete Fraud Or Just A Total Mockery?

Tyler Durden's picture

Today, the metals space is abuzz with a CFTC "comment letter" posted on its website by an alleged "current JPM employee." There is only one problem - this letter is either a complete fraud or simply a total mockery, as it provides absolutely nothing new, and merely regurgitates existing manipulation claims already out in the public domain, and backed by precisely zero evidence. How about attaching a signed trade confirm, or a daily internal P&L report, or even a blotter entry? No? Because they don't exist? Needless to say, anyone can submit such an alleged insider letter, and since there is no name associated to it, we would advise everyone to merely enjoy this a prank attempt. Unfortunately, what more such repeated faux "whistleblower letters", which are likely forthcoming, from other "current JPM employees" will do is simply dilute the effect of any real such disclosure that may come in the future. For that purpose, we strongly caution anyone who considers submitting such disinformation attempts from doing so as it will merely impair and discourage any just intent of validated and justified whistleblowing, either at JPM or elsewhere.

Full "letter" below

Dear CFTC Staff,

Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.

I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.

On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.

There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke's speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.

As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.

It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America's best kept secrets. Please do not allow this to turn into another Enron.

Kind Regards,
-The 1st Whistleblower of Many

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redpill's picture

What does he have against the word "because" that it deserves abbreviation every time?

Chief KnocAHoma's picture

This just in - a former GS employee jumped in front of a train this morning after shooting himself in the head from behind four times.

In other news - The Brave One, Husein Obama picked a 1 seed, North Carolina, to win the NCAA basketball tornament. You fellas better not embarass the Leader... or else!

Born Patriot's picture

Guys, that letter is the real deal. JPM has been maniuplating gold and silver with the help of central banks to promote their multicultural fiat currency system. Multicultural societies ALWAYS collapse, UNLESS they are supported by fraudulant fiat money. This is what the anti-Ron Paul crowd doesn't want you to know.

tmosley's picture

Your act is extremely tired.  Give it up, RNR.

LowProfile's picture

Change your icon to the Gadsden and drop the separatist rhetoric and you'd get 100% up-votes...


Looks true to me..therefore its real even if its not.

Buck Johnson's picture

I told many before that Greece had over 1 trillion dollars or even 2 trillion in CDS's.  Because since it's not a regulated market they don't know who or what owns CDS to certain financial actdions.

Sudden Debt's picture

Like my grandfather use to say:




forzafinance's picture

Looks pretty fake to me.. there's nothing there that couldn't have been pulled up from 10 minutes of research

SheepDog-One's picture

Its fake, because its true? So youre really saying its real.

passwordis's picture

 Studies within the law enforcement industry will tell you it is virtually impossible to consistently detect when someone is lying.  Law enforcement professional will also tell you that when people are shown a genuine photo of a murder victim laying in a pool of blood, they often think the photo is fake.

Trying to determine if the author of a written letter is being honest is an exercise in futility

CPL's picture

It's a honeypot meme.  Same thing is done in Anonymous.  Where does the honeypot pop up and who is talking about it.  I believe marketing groups call it marketing metrics.


JPM is probably just seeing where it needs to tighten the security screws or who isn't getting put on the Xmas wishlist.

SheepDog-One's picture

This is all just stupid....its well past time for them to pull out the rug on this puppet show.

dereksatkinson's picture

Spelin + Gramur = whorible.

snakeboat's picture

smells like Euro-spanglish.   and I'm pretty sure the regulators are sposed to be regulatin' on the banks and not on 'us'.

Mr Lennon Hendrix's picture

The CFTC are a bunch of wonks.  It was forever ago that Maguire came out and handed them silver manipulation on a, well, platter.

Pegasus Muse's picture

An Oldie but a Goodie.  

Water, Meet Blood - JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct

Acet's picture

Actually if you're a big bank worried about possible whistleblowers making the news with a story about your company, it's a good strategy to pre-desensitize the public and the media with a flood of highly suspicious whistleblower stories.

Theta_Burn's picture

winner of a chicken dinner...

Zero Debt's picture

Which may imply that a massive whistle is going to be blown...but later..

"This is not the whistle (blow) you have been looking for"

Theta_Burn's picture

It's times like these that i completely regret not choosing the nick "Massive Whistle"...

Seasmoke's picture

my first reaction when i read it (even before this ZH thread) was its a fake

qussl3's picture

Good lord that's pathetic.

passwordis's picture

 Studies within the law enforcement industry will tell you it is virtually impossible to consistently detect when someone is lying.  Law enforcement professional will also tell you that when people are shown a genuine photo of a murder victim laying in a pool of blood, they often think the photo is fake.

Trying to determine if the author of written letter is being honest is an exercise in futility

SIOP's picture

I dont think it's fake, just my feelings,  actually I think he/she sounds somewhat young and scared

Edit: What ever happend to Andrew Maguire?  I'll have to look that up.

SeverinSlade's picture

I'll bet that Turd is behind this.  Probably upset that his TA and "1900 gold 40 silver any day now because resistance levels held!" turned out to be a big miss.

Don't mean to hate on the guy.  His charts offer some insight as to where price MAY go, but Turd (and almost all of the Turdites) fail to grasp that there's a lot more to PM manipulation than than Blythe Masters and JPM.

SeverinSlade's picture

Yes he did, but after a saying that silver was poised to rocket up to $40+ and gold $1800+. 

I like TF, I really do.  I'm just never as enthusiastic (in the short/medium term at least) as him or his followers.  I always exercise caution as we all know that PMs are holy water to the bankster fucks.

In the end, we're all in the same fight, so don't take my words as a hit on TF.  I value his site and TA for sure. 

goldenboy's picture

Be smart. Abandon charts. They are nothing but a distraction. The outcome was encoded into this paper gold game at its inception 40 years ago: PAPER gold public price to zero; Physical Gold price publicly reassigned true value. Dump your PAPER now, buy PHYSICAL now. Simple.

spartan117's picture

Please do not allow this to turn into another Enron.


I want to see JPM turn into another Enron.  That would be heavenly.

Silverhog's picture

Reads like another Wynter Benton story. Everything is fixed or manipulated to some degree. Just expect extreme volatility in owning precious metals and stay physical. I'm in for the long run, ignore these distractions.

Paul Atreides's picture

Well spoken that's my current position.

I would just like to say a quick hello to all the peeps on Zerohedge. I took the red pill last October and have been tumbling down the rabbit hole ever since.  I thoroughly enjoy all your commentary it is very humurous and you are all exteremely intelligent other then the odd troll. I am an analyst and mathmatician at heart so I would also like to give a big thanks to Tyler for getting us the data that matters!

Keep on stacking!


passwordis's picture

 Studies within the law enforcement industry will tell you it is virtually impossible to consistently detect when someone is lying.  Law enforcement professional will also tell you that when people are shown a genuine photo of a murder victim laying in a pool of blood, they often think the photo is fake.

Trying to determine if the author of written letter is being honest is an exercise in futility.

Carbon Skidmark's picture

I blame Monty Python and Japanese animation for not being able to tell if a picture of a dead guy is real.  Thanks to them I think people should have 50 gallons of highly pressurized bright red blood in them.

haskelslocal's picture

Wow... So there was a study on studying liars and that study says studying is not impossible by itself, but virtually so. Good thing such studies are also inconsistent.

Work in any industry and we all can deduct details and aspects of what's being said and determine wheather such thoughts are consistent with what a typical employee would say from a given position of employ. Some things are not known by the shipping clerk that the CEO knows and vice versa. Commentary above is such a broad stroke that it doesn't represent any particular position. It's not about lying, it's about truth of message. I can tell you everything you need to know about garbage but I'm not, always, a garbage man.   

Moe Howard's picture

I could swear I read this before somewhere, and I did, post # 2257850 #2257847 and now this one. You're making the thread too long and numbing my mind.

Everybody understands a double post, but three is stuttering. Master that C=64 or quit posting.

passwordis's picture

 I would love to know the reasoning of the two people who voted down on the above post.

earnyermoney's picture

Meanwhile, Democrat Bart Chilton, decides to send a "message". LOL.

haskelslocal's picture

Just like lotto winners, alleged whistleblowers need representation. For no matter the morale code, you're idiotic if you're blowin' tunes on that whistle yet not goin' after the cash. 

Yet even if a fake it speaks the near truth.

lizzy36's picture

Looks like the work of frat brothers from a lesser university (brown).

chinaboy's picture

Things like JPM is listed as a commercial is an obvious problem. ?May be CFTC employees should come forward and expose why the regulator choose to look the other way.

Downtoolong's picture

This one looks suspect to me. Nonetheless, it does highlight a cover-my-ass aspect of Jamie Dimon's internal memo to employees which I must admit is somewhat brilliant. After all, how embarassing would it be if the day after JPM went advertising their competitor's faults to clients when they too were discovered to be the not-so-proud employer of the next Greg Smith. Better to just take the moral high ground for now and hope (er make it very clear to employees) that better not happen.