JPMorgan, HSBC accused of silver manipulation
NEW YORK, Oct 27 (Reuters) - JPMorgan Chase & Co (JPM.N) and HSBC Holdings Plc (HSBA.L) were sued on Wednesday by an investor who accused them of conspiring to drive down silver prices, and reaping hundreds of millions of dollars of illegal profits.
The banks were accused of manipulating the market for COMEX silver futures and options contracts since June 1, 2008 by amassing huge short positions in silver futures contracts.
"Defendants reaped hundreds of millions of dollars, if not billions of dollars in profits" from the conspiracy, the complaint said.
The lawsuit was filed in U.S. district court in Manhattan by Brian Beatty. He identified himself as a Connecticut resident who traded COMEX silver futures and options and contracts, and lost money because of the alleged market manipulation.
Beatty sued one day after the Commodity Futures Trading Commission proposed regulations to give it greater power to thwart traders who try to manipulate prices. Commissioner Bart Chilton said he believed there have been "repeated attempts to influence prices" in silver [ID:nN26129046].
Spokeswomen for JPMorgan and HSBC did not immediately return calls seeking comment. Both are major participants in the silver market.
The lawsuit seeks class-action status, triple damages and other remedies.
The case is Beatty v. JPMorgan Chase & Co et al, U.S. District Court, Southern District of New York, No. 10-08146.
NEW YORK, Oct 27 (Reuters) - JPMorgan Chase & Co (JPM.N) and HSBC Holdings Plc (HSBA.L) were sued on Wednesday by an investor who accused them of conspiring to drive down silver prices, and reaping hundreds of millions of dollars of illegal profits.
The banks were accused of manipulating the market for COMEX silver futures and options contracts since June 1, 2008 by amassing huge short positions in silver futures contracts.
"Defendants reaped hundreds of millions of dollars, if not billions of dollars in profits" from the conspiracy, the complaint said.
The lawsuit was filed in U.S. district court in Manhattan by Brian Beatty. He identified himself as a Connecticut resident who traded COMEX silver futures and options and contracts, and lost money because of the alleged market manipulation.
Beatty sued one day after the Commodity Futures Trading Commission proposed regulations to give it greater power to thwart traders who try to manipulate prices. Commissioner Bart Chilton said he believed there have been "repeated attempts to influence prices" in silver [ID:nN26129046].
Spokeswomen for JPMorgan and HSBC did not immediately return calls seeking comment. Both are major participants in the silver market.
The lawsuit seeks class-action status, triple damages and other remedies.
The case is Beatty v. JPMorgan Chase & Co et al, U.S. District Court, Southern District of New York, No. 10-08146.