U.S. Intelligence Suspected Of Killing CFTC Silver Manipulation Case Against JP Morgan

“Four-year silver probe set to be dropped,” FT titles its piece Monday regarding the JP Morgan silver manipulation scandal.

According to FT:

A four-year investigation into the possible manipulation of the the silver market looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation. . .

In 2010, Bart Chilton, a CFTC commissioner, said that he believed there had been “fraudulent efforts” to “deviously control” the silver price.

But after taking advice from two external consultancies, the first of which found irregularities on certain trading dates that it believed deserved more analysis, CFTC staff do not have sufficient evidence to bring a case, according to the people familiar with the situation.

Though Ted Butler, GATA and Andrew Maguire have provided the ‘watchdog’ agency with a drivers licenses of the suspects, a video tape of the incidents, the address of the assailants and the usual time they sit down for dinner, two mysterious “external consultants” believe that the “CFTC staff do not have sufficient evidence to bring a case.”

Therefore, the refusal of the CFTC to hand over the ‘smoking gun’ evidence to the U.S. Department of Justice in the JP Morgan case is no longer the issue for silver bugs to seek relief; the issue now becomes: Why won’t charges ever be filed against Jamie Dimon?

On May 5, 2006, then-President George W. Bush essentially handed over Wall Street, COMEX and CME to the Director of National Intelligence (DNI), a spy agency created in Dec. 17, 2004. In essence, with the signing of the Intelligence Reform and Terrorism Prevention Act of 2004, anything that truly matters in the financial markets ultimately has no democratic oversight to protect market participants.

From the Business Week article of May 2006 (no longer available online):

Intelligence Czar Can Waive SEC Rules

Now, the White House’s top spymaster can cite national security to exempt businesses from reporting requirements.

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.

AUTHORITY GRANTED. William McLucas, the Securities & Exchange Commission’s former enforcement chief, suggested that the ability to conceal financial information in the name of national security could lead some companies “to play fast and loose with their numbers.” McLucas, a partner at the law firm Wilmer Cutler Pickering Hale & Dorr in Washington, added: “It could be that you have a bunch of books and records out there that no one knows about