Where there’s smoke there’s usually fire
JP Morgan and the US Justice Department have just reached an agreement for a $13 billion settlement over the mortgage bond scandal. This is the same bank that has paid out $3.7billion in fines already this year for its part in such criminal practices as the Libor, London Whale, defrauding credit card customers, electricity market manipulation and mortgage foreclosure scandals.
With a market cap of $195 billion they may just see this as the cost of doing business but it is clear the US regulators seem to be paying more and more attention to their practices. This could of course eventually see the end to what very clearly seems to be their role in the gold and silver price manipulation we have spoken about and a return to ‘free market’ for assets that are in huge demand and with limited supply as prices remain below the cost of production for many mines.