Tag: USA

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Article: FOREX-Bitcoin breaks $20,000 for first time, Switzerland named currency manipulator

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FOREX-Bitcoin breaks $20,000 for first time, Switzerland named currency manipulator

Suzanne Barlyn, 16 December 2020

Bitcoin smashed through $20,000 for the first time on Wednesday while the Swiss franc gained after the U.S. Treasury labelled Switzerland a currency manipulator.

Bitcoin last jumped 6.9% to move as high as $20,651. The cryptocurrency has gained more than 170% this year, buoyed by demand from larger investors attracted to its potential for quick gains, purported inflation-resistant qualities, and expectations it will become a mainstream payment method.

“The latest run to $20,000 hasn’t been accompanied by nearly the amount of hype as there was back in 2017,” said Paul Hickey, co-founder of Bespoke Investment Group. Bitcoin then garnered more interest from retail investors, but some may now be leery after getting burned, Hickey said.

The Treasury, also on Wednesday, said that through June 2020 both Switzerland and Vietnam had intervened in currency markets to prevent effective balance of payments adjustments. It is not surprising that the Trump administration might make a case about currency manipulation, given recent “runaway appreciation” of the Swissy,

The Swiss Franc was last at 0.8844, with the dollar down 0.12% against the currency on the day. The Swiss government, on Wednesday, said it is open for bilateral talks with the U.S. Treasury about the currency manipulation issue.

Strong euro zone survey figures and hopes of progress on Brexit negotiations pushed the euro above
$1.22 against the U.S. dollar on Wednesday for the first time since April 2018, but later notched
downward. Continue reading “Article: FOREX-Bitcoin breaks $20,000 for first time, Switzerland named currency manipulator”

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Article: U.S. Treasury labels Switzerland, Vietnam as currency manipulators

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U.S. Treasury labels Switzerland, Vietnam as currency manipulators

Reuters Staff, 16 December 2020

WASHINGTON (Reuters) – The U.S. Treasury labeled Switzerland and Vietnam as currency manipulators on Wednesday and added three new names to a watch list of countries it suspects of taking measures to devalue their currencies against the dollar.

In what may be one of the final broadsides to international trading partners delivered by the departing administration of U.S. President Donald Trump, the Treasury said that through June 2020 both Switzerland and Vietnam had intervened in currency markets to prevent effective balance of payments adjustments.

Furthermore, in its semi-annual currency manipulation report, the Treasury said Vietnam had acted to gain “unfair competitive advantage in international trade as well.” Continue reading “Article: U.S. Treasury labels Switzerland, Vietnam as currency manipulators”

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Article: The US clampdown on firms “spoofing” the markets

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The US clampdown on firms “spoofing” the markets

Simon Wilson, 24 October 2020

A few weeks ago the big US bank JPMorgan Chase admitted that its then-employees fraudulently rigged precious-metals and Treasury (US government bond) markets tens of thousands of times between 2008 and 2016. As part of its settlement with the US authorities, it agreed to pay a total of $920m in fines and restitution (including $172m in “disgorgement”, meaning paying back its ill-gotten gains). The bank admitted that traders based in New York, London and Singapore – working in the gold, silver and other precious metals futures markets, as well as the Treasury cash and futures markets – had engaged in the practice known as “spoofing” on thousands of occasions over the course of eight years.

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Article: JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries

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JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries

Carolina Gonzalez, 16 October 2016

JPMorgan Chase & Co. agreed to pay over $955 million to settle civil and criminal charges over a scheme involving fake trades in precious metals and U.S. treasuries designed to manipulate the market in an effort to enhance the bank’s profits and cut losses. The multi-agency enforcement action was brought by the Commodity Futures Trading Commission (CFTC), the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). For nearly a decade, JPMorgan Chase & Co’s traders sitting in New York, London, and Singapore used spoofing to manipulate hundreds of thousands of transactions in precious metals futures markets, including gold and silver, as well as U.S. Treasury cash and futures markets.

The CFTC alone imposed a whopping $920 million fine, the largest ever imposed by the agency in a spoofing case, including nearly $312 million in restitution to harmed investors, $172 million in disgorgement of ill-gotten gains, and over $436 million in civil penalties. This record-setting action signals the CFTC’s resolute commitment to punish those who engage in manipulative and deceptive trading practices. The hefty fine also reflects the bank’s failure to prevent and cease the wrongdoing, as well as its failure to provide adequate cooperation to regulators in the early stages of the investigation. Continue reading “Article: JPMorgan Chase Pays nearly $1 Billion in Fines for Market Manipulation of Precious Metals and U.S. Treasuries”

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Article: UK parliament committee says Huawei colludes with the Chinese state

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UK parliament committee says Huawei colludes with the Chinese state

Reuters Staff, 08 October 2020

The British parliament’s defence committee said on Thursday that it had found clear evidence that telecoms giant Huawei had colluded with the Chinese state and said Britain may need to remove all Huawei equipment earlier than planned.

British Prime Minister Boris Johnson in July ordered Huawei equipment to be purged from the nascent 5G network by the end of 2027. U.S. President Donald Trump claimed credit for the British decision.

“The West must urgently unite to advance a counterweight to China’s tech dominance,” Tobias Ellwood, chairman of the defence committee, said. “We must not surrender our national security for the sake of short-term technological development.”

The committee did not go into detail about the exact nature of the ties but said it had seen clear evidence of Huawei collusion with “the Chinese Communist Party apparatus”.

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Article: JP Morgan settles massive market manipulation case

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JP Morgan settles massive market manipulation case

James Langton, 29 September 2020

Wall street giant JPMorgan Chase & Co. is paying US$920 million to resolve allegations that it engaged in manipulative trading in the U.S. Treasuries market and precious metals futures markets.

The firm entered a deferred prosecution agreement with the U.S. Department of Justice to resolve wire fraud charges stemming from alleged illegal trading in precious metals futures, U.S. Treasury futures, and in the cash market for U.S. Treasury notes and bonds.

Under the agreement, JPMorgan will pay over US$920 million, including a criminal monetary penalty, disgorgement and victim compensation.

According to the justice department, between March 2008 and August 2016, numerous traders on JPMorgan’s precious metals desks in New York, London and Singapore placed spoofing orders for precious metals futures.

A couple of those traders have pleaded guilty to criminal charges and several others are still facing charges.

Traders on the firm’s U.S. Treasuries desks in New York and London also engaged in spoofing in U.S. Treasuries markets.

Portions of the criminal penalty and disgorgement are to be credited against payments to be made to the U.S. Commodity Futures Trading Commission and the U.S. Securities Exchange Commission under separate agreements with the regulators.

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Article: JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators

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JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators

Sergei Klebnikov,  29 September 2020

JPMorgan Chase will pay a record $920 million to resolve a criminal investigation by three federal agencies over its role in the alleged manipulation of precious metal and Treasury markets, federal regulators said on Tuesday.

JPMorgan agreed to a settlement that resolves investigations by the Justice Department, Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

As part of the deal, the bank will admit to wrongdoing and pay a record fine of $920 million, according to a statement from the CFTC on Tuesday. Continue reading “Article: JPMorgan Admits Wrongdoing In Illegal Trading Allegations, Will Pay Record $920 Million To Regulators”

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Article: Short-seller Muddy Waters takes aim at Nano-X Imaging after Citron

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Short-seller Muddy Waters takes aim at Nano-X Imaging after Citron

Manas Mishra, 22 September 2021

(Reuters) – U.S.-listed shares of Israel’s Nano-X Imaging Ltd NNOX.O fell nearly 20% on Tuesday after short-seller Muddy Waters joined Citron Research in raising doubts over the company’s diagnostic product.

Muddy Waters likened the company to Nikola Corp NKLA.O, whose founder Trevor Milton stepped down on Monday amid scathing reports from short-sellers.

“We conclude that NNOX (Nano-X) has no real product to sell other than its stock,” Muddy Waters said in a report on Tuesday.

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Article: Green Plains sues ADM, alleging ethanol market manipulation

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Green Plains sues ADM, alleging ethanol market manipulation

P.J. Huffstutter, 05 July 2020

CHICAGO (Reuters) – Green Plains Inc, one of the biggest U.S. ethanol producers, sued Archer Daniels Midland Co on Tuesday, accusing the global grain trader of manipulating the price of the biofuel to profit from its positions in the derivatives market.

Green Plains filed the proposed class action with the U.S. District Court of Nebraska, where it also claimed that senior ADM officials knew of the alleged manipulation. ADM told Reuters in an email statement that the company does not comment on pending litigation. The lawsuit seeks unspecified damages. It follows reporting by Reuters that ADM’s ethanol selling had led traders to complain to S&P Global Platts, which provides benchmark pricing for the physical ethanol contract at different U.S. delivery points. Continue reading “Article: Green Plains sues ADM, alleging ethanol market manipulation”

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Article: Mercurity Fintech Holding Inc.

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Mercurity Fintech Holding Inc.

SEC, 20 May 2020

Mercurity Fintech Holding Inc. is regulated by the U.S. Security and Exchange Commission . Mercurity Fintech Holding Inc is primarely in the business of services-computer processing & data preparation. This page includes all SEC registration details as well as a list of all documents (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports) filed by Mercurity Fintech Holding Inc..

JMU Ltd is an online platform providing B2B (Business to business) services to food-industry suppliers and customers in China. The company connects suppliers and customers in the food service industry through its online platform. It offers a selection of products at competitive prices through its website and mobile applications as well as it offers convenient payment options and comprehensive customer services.

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Article: US Authorities Build Case Against JP Morgan Over Market Manipulation For Precious Metals

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US Authorities Build Case Against JP Morgan Over Market Manipulation For Precious Metals

Mike Papantonio, 29 February 2020

Via America’s Lawyer: RT correspondent Michele Greenstein joins Mike Papantonio to walk us through a developing criminal case against bank behemoth JPMorgan, which is being accused yet again of manipulating precious metals markets for the express profit of its own clients and investors.

Mike Papantonio: Federal prosecutors are turning their attention towards bank behemoth JP Morgan, which is accused of manipulating gold and silver prices for the benefit of their clients and their shareholders. Michele Greenstein joins me now to explain what’s happening with this case. First off, run us through these allegations, Michele, you’ve covered this story a fair amount. It’s, it’s a story that again, corporate media isn’t covering this one. What is your take on this story?

Michele Greenstein: Well, US authorities are building a case, although formal accusations have not been made against the bank, but according to two people who are familiar with the matter who spoke with Bloomberg news, US authorities, like we said, are building a criminal case against JP Morgan. Now both the bank and the DOJ declined to comment, but a bank spokesperson did confirm that the DOJ is investigating “trading practices in the metal market and related conduct.” So Pap, what we’re talking about here is metal market manipulation that is intentionally misleading or spoofing members of the metals market. So gold, silver, platinum, palladium, all of these are the precious metals, right? And what market manipulation looks like is this.

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Article: Hound of Hounslow: Who is Navinder Sarao, the ‘flash crash trader’?

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Hound of Hounslow: Who is Navinder Sarao, the ‘flash crash trader’?

Andy Verity & Eleanor Lawrie, 28 January 2020

Former stock market trader Navinder Sarao has been sentenced to a year of home detention for helping trigger a brief $1tn (£770bn) stock market crash.

Dubbed the “Hound of Hounslow” in an ironic reference to the famous “Wolf of Wall Street” fraudster, the Briton was shown leniency by a Chicago judge due to the extraordinary circumstances of his case.

But who is he – and how did he help cause markets to plunge almost 4,000 miles away? Continue reading “Article: Hound of Hounslow: Who is Navinder Sarao, the ‘flash crash trader’?”

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Article: Swiss franc climbs after US adds it to ‘manipulation’ watchlist

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Swiss franc climbs after US adds it to ‘manipulation’ watchlist

Sam Jones in Zurich and Eva Szalay in London , 15 January 2020

The Swiss franc nudged up to a near three-year high against the euro on Tuesday as markets anticipated the move would limit the Swiss National Bank’s appetite for aggressive action to try to hold down its currency in future.

“The report is a warning shot to the SNB,” said George Saravelos, global co-head of currency research at Deutsche Bank, adding that the franc is likely to push higher from here. It now trades around CHF1.08 against the euro.

The US called on Bern on Monday to “more forcefully support domestic economic activity” by spending money and reducing the country’s already low tax burden, in what was an unusual swipe at a sovereign nation’s financial affairs. “Despite borrowing costs for the Swiss government being among the lowest in the world, fiscal policy remains underutilised, even within the constraints of Switzerland’s existing fiscal rules,” the US Treasury said in its assessment.

The SNB said on Tuesday that its interventions were transparent, and “motivated purely by monetary policy . . . aimed at addressing the negative consequence for inflation and the economy through a highly valued franc.”

“They are not aimed at giving Switzerland advantages by undervaluing the Swiss franc,” it added.

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Article: Goldman Sachs ‘close to $2bn settlement’ over 1MDB scandal

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Goldman Sachs ‘close to $2bn settlement’ over 1MDB scandal

Kalyeena Makortoff, 19 December 2019

Goldman Sachs is close to reaching a settlement of nearly $2bn (£1.5bn) with the US Department of Justice over the 1MDB corruption scandal, according to a report.

The Wall Street bank is said to be formulating a deal under which its Asian subsidiary, rather than the parent company, would pay a multibillion-dollar fine and admit guilt for having allegedly turned a blind eye while $4.5bn was looted from its client, Malaysia’s sovereign wealth fund, 1MDB.

The deal would also involve oversight from an independent monitor that would help reform the bank’s compliance rules, the Wall Street Journal reported.

The settlement package would end the US justice department’s investigation into Goldman Sachs’ role as an underwriter and arranger of bond sales for the wealth fund, totalling $6.5bn.

About $4.5bn was allegedly looted from 1MDB in a fraud said to have involved the former Malaysian prime minister Najib Razak, the Malaysian financier Jho Low, and his associates. The funds were allegedly used to buy everything from yachts to artwork, and fund the production of Hollywood films including The Wolf of Wall Street.

Razak is facing criminal charges in Malaysia but has pleaded not guilty. Low is facing charges in both Malaysia and the US, and has also denied wrongdoing.

Goldman Sachs, meanwhile, said it was lied to about how the proceeds of the three bond sales it conducted on the fund’s behalf between 2012 and 2013 were used.

In November, the Malaysian prime minister, Mahathir Mohamad, confirmed he had rejected a separate offer from Goldman Sachs worth less than $2bn. “We are not satisfied with that amount so we are still talking to them … If they respond reasonably, we might not insist on getting that $7.5bn,” he told the FT.

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Article: US charges another former JP Morgan exec with market manipulation

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US charges another former JP Morgan exec with market manipulation

Reuters . New York, 17 November 2019

The Department of Justice has charged another former JPMorgan Chase and Co executive with alleged racketeering and manipulating precious metals prices between 2008 and 2016, the latest in a string of similar prosecutions.

The indictment against Jeffrey Ruffo, who is also charged with other federal crimes including conspiracy to commit wire fraud, is the result of an ‘ongoing investigation’, federal prosecutors said in a statement. Ruffo is the sixth person to be charged with alleged fraud in connection to JPMorgan’s precious metals desk.

The case relates to spoofing, which involves placing bids to buy or offers to sell contracts with the intent to cancel them before execution, allowing spoofers to influence prices. In recent years there has a been a surge in spoofing related prosecutions in the United States by the Department of Justice and the Commodity Futures Trading Commission.

Ruffo could not immediately be reached for comment.

A JPMorgan spokesman did not immediately respond to a request for a comment. The US bank has said in recent regulatory filings that it is cooperating with various investigations relating to its metals trading practices.

According to the indictment, Ruffo worked at JPMorgan from 2008 to 2017 as a salesperson serving hedge funds investing in precious metals and he encouraged JPMorgan traders to place deceptive orders to create price advantages for his clients.

The indictment also alleged that Ruffo and his former colleagues defrauded JPMorgan’s clients who had invested in ‘barrier options’ by pushing option prices to levels that benefited the bank.

An option is a financial instrument that gives buyers the right to buy or sell an underlying asset at an agreed price and at a fixed time. Its value is tied to the value of the asset.

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