Big Banks Rigging Metals

Guest Post from Clint Siegner, Money Metals Exchange

The crooked precious metals trading department at JPMorgan Chase lost another man last week. Christian Trunz pleaded guilty to criminal “spoofing” of the markets and resigned from his position as an Executive Director with the bank.

The story mirrors that of John Edmonds, the Chase banker who pleaded guilty last October for rigging gold and silver prices.

Like Edmonds’ illicit trading activity, Trunz’s was pervasive. It spanned nearly a decade – from 2007 through 2016 – and involved many “thousands” of orders.

The disgraced banker has agreed to cooperate with the Department of Justice investigation. He has told investigators his training on how to cheat was conducted by JPMorgan executives even more senior than himself.

Trunz is not the only gold and silver trader to plead guilty this summer.

Corey Flaum, who dutifully rigged prices for a combined 9 years, first at Bear Stearns then at Scotia Capital, admitted guilt in July. Again, the admission covered years of activity and “thousands” of fraudulent orders. He has also told investigators he received his training in the dark arts from more senior executives.

The picture is getting clearer with each new revelation. Senior bank executives at multiple bullion banks are accused of training and supervising a roster of traders tasked with cheating their own clients and other market participants.

These are not isolated incidents involving “rogue” employees. This fraud is organized, pervasive, and long-term.

Yet, none of the corrupt banks involved have lost their trading privileges!

Widespread price rigging is now an established fact in the precious metals markets. The only question is whether JPMorgan Chase and the other banks will be held truly accountable.

More crooked traders turning state’s evidence is certainly a good sign. However, at least two crooked banks have already cut deals with prosecutors – Deutsche Bank and, more recently, Bank of America.

These institutions wield enormous leverage in Washington, much like Jeffrey Epstein apparently did. Let’s hope the banks do not all escape with the same sort of sweetheart non-prosecution agreements the pedophile received a decade ago.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals’ brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

Thanks to Clint Siegner

The Deviant Investor

One thought on “Big Banks Rigging Metals

  1. Yes, Clint, the criminal manipulation of the precious metals markets is and has been obvious for decades. No doubt about it and it doesn’t require tin-foil hats to see and believe it. But, as you state, who gives a scheisse if nothing happens to the criminals that perpetrated and continue to perpetrate the crimes, or to the executives that trained them, or to the top executives of the firms and the firms themselves (JPM, etc) that made the decisions to operate illegally in the markets? One of the problems is that that so many say, as you just did, “Let’s hope the banks do not all escape.” If all we can do is “hope” then once again, nothing will happen. The investigation has to go deeper, much deeper. Who is it, exactly, that has offered and is offering these “sweetheart deals” (whose “fines” are nothing more to these institutions than the cost of doing business) and who is controlling those offering the deals? Are they within our system of (in)Justice (eg, DOJ, FBI, SEC, CFTC, etc), or somewhere behind the curtains–people with money, power, and influence–deep state, anyone? These are the real criminals, because they run the show from behind the scenes, gain hugely, then stand back and let underlings take the fall. THEY must be outed and indicted and prosecuted. Without doing that, nothing will happen, no matter how much “hopium” we smoke.

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