On The Job Training

IMG Auteur
Published : August 23rd, 2019
492 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
0
comment
Our Newsletter...

Tuesday’s announcement by the Justice Department of a guilty plea by a long term former trader from JPMorgan for spoofing COMEX precious metal futures was the second such guilty plea since October. Both traders are cooperating in the DOJ’s ongoing investigation.

https://www.justice.gov/opa/pr/precious-metals-trader-pleads-guilty-conspiracy-and-spoofing-charges


While it took way too long for the Justice Department and the CFTC to finally crack down on spoofing, I suppose it’s a case of better late than never. And there can be little doubt that the regulators have cracked down on the illegal practice, which involves the entry and immediate cancellation of large orders solely designed to manipulate prices in the short term.

But there is another aspect of Tuesday’s announcement that pertains strictly to JPMorgan of all the firms where spoofing has occurred. Only at JPMorgan has the Justice Department alleged that the two traders pleading guilty had learned the practice from more senior traders at the bank and spoofed with the full knowledge and consent of their immediate supervisors. Those are the Justice Department’s words, not mine. This brings new meaning to the term - on the job training.

The two traders pleading guilty had worked at JPMorgan for more than a decade, making them each around 23 years old when they began their careers at JPMorgan. I remember what it was like getting a job at a prestigious financial firm at such a young age when I began working at Merrill Lynch nearly 50 years ago. Like the two former JPM traders, I felt lucky to have been given the opportunity to work in such a profession and would do anything I could to succeed at it. If someone told me to jump – I would have asked, how high? I wouldn’t have done anything illegal, but at twenty-something years of age, I’m not sure I would even know for sure what was illegal. How much do we really know at 23 years of age?

I think the same of the two young former JPMorgan traders who have pled guilty. It’s not like anyone teaches spoofing in college; this is a practice learned on the job. In this case, young and inexperienced traders, eager to please and succeed, were sure to do whatever they were instructed and taught by more experienced traders and supervisors. Both did so and rose through the trading ranks, reaching the position of vice president and executive director.

Not for a minute am I completely excusing the illegal behavior of the two traders pleading guilty, but would they have embarked on a journey that ended in criminal guilty pleas were it not for their training and molding by their employer? As such, the guilty pleas need to be put into proper perspective. The Justice Department can continue to extract guilty pleas from individual traders from JPMorgan or it can go to the root cause of the criminal activity and put pressure on the bank to end its manipulative ways.

Ted Butler

https://www.butlerresearch.com/

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Ted Butler is an independent Silver Analyst who has been publishing unique precious metals commentaries on the internet since 1996. He offers a subscription service with once or twice weekly commentaries including detailed analysis of the Commitment of Traders Report, regulatory developments, supply/demand considerations, and topics of interest to investors in precious metals, with an emphasis on silver
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Enter, the Dragon
21 OctS W.
Is it true that HRC actually eats babies?
Bank of England Warns of an ‘Abrupt’ Financial Collapse Due To Clim...
18 OctThemis2
A cynical attempt on Carney's part to deflect the blame for the coming financial crisis. The central banks must shoulder the majority of the culpa...
Bank of England Warns of an ‘Abrupt’ Financial Collapse Due To Clim...
16 OctS W.1
What a load of nonsense from Carney, Likely there will be a crash but to blame it on the climate is ...nonsense I am wondering if he has re...
A Hard Rain
09 Octcarlomar0
Bravo! The best analysis of what is going on! I read your column faithfully and always find new thoughts and valuable ideas in your writing!
Juniors ? The Butterflies in the Animal Farm of the investing world ?
07 Octstocking up pennies
Very well written article, Alan. It pictures the volatibility of the junior stocks, that are, indeed, mostly comparable to ''social butterflies'' a...
We Are Very Confident In $1,700 Gold Before The Muppets Awaken
08 OctThemis
You are correct regarding spelling but is it necessary to be pedantic about it? Surely the content of the article is more important?
A Hard Rain
08 OctThemis2
I agree with every word. Keep telling it as you see it. People are so close to the issues that they need a commentator like you to stand back and...
We Are Very Confident In $1,700 Gold Before The Muppets Awaken
02 OctLouis Solomons
There is no such word as commentairies.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS