New commentary by Reg Howe replies to Barton Biggs of Morgan Stanley

a href=http://www.gata.org/JPMFailsToReport.htmlhttp://www.gata.org/JPMFailsToR...

1:24a ET Monday, August 5, 2002

Dear Friend of GATA and Gold:

GATA consultant Michael Bolser has discovered
that J.P. Morgan Chase has not reported to the
U.S. Securities and Exchange Commission or to
its shareholders, via the firm's last annual report,
the $45 billion in gold derivatives the firm has
reported to the U.S. Office of the Comptroller of
the Currency.

quot;This,quot; Bolser writes in an essay posted at
www.GATA.org, quot;implies that J.P. Morgan Chase
shareholders have far greater risk than disclosed
by the company.quot;

GATA Chairman Bill Murphy has just brought this
discrepancy to the attention of Morgan Chase's
president, William Harrison Jr., the SEC, and
several other government agencies. GATA
urges its U.S. supporters to raise this issue with
Morgan Chase, the SEC, and Congress in
pursuit of getting a public accounting of Morgan
Chase's role in the gold market.

Such an explanation well might be that those
gold derivatives really don't belong to Morgan
Chase at all but to the U.S. government. In any
case, those gold derivatives seem to be the
main device by which the gold price is suppressed,
so you may understand the need to call maximum
attention to them.

Murphy's letter to Morgan Chase, which has been
copied with Bolser's report to those government
agencies, is appended here, along with the first
paragraph of Bolser's report.

You can read the whole of the report here:

a href=http://www.gata.org/JPMFailsToReport.htmlhttp://www.gata.org/JPMFailsToR...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

GATA CHAIRMAN'S LETTER TO MORGAN CHASE

William Harrison Jr., President
J.P. Morgan Chase
270 Park Avenue
New York, NY 10017

August 4, 2002

Dear Mr. Harrison:

The day is soon approaching for major
corporations to recertify their quarterly
results for the Securities and Exchange
Commission. Corporate executive officers must
do so under penalty of time in jail if what
they sign off on is false. In your recent
letter to the Senate's Permanent Subcommittee
on Investigations you stated: quot;I do not have
personal knowledge of, and, therefore, cannot
attest on the basis of my personal knowledge
to, the facts necessary to answer the
subcommittee's questions.quot;

Therefore, the Gold Anti-Trust Action
Committee brings your attention to J.P.
Morgan Chase's gold reporting to various
authorities via the enclosed report by GATA's
Mike Bolser.

You also stated in your response to the
Senate investigating committee that: quot;As the
largest corporate lender in the world,
transparency is key to our business.quot;

Clearly, that is not the case when it comes
to the reporting of your activity in the gold
market. The Gold Anti-Trust Action Committee
charges that the reason for this lack of
transparency is your role in manipulating the
price of gold. Although you may not have had
quot;personalquot; knowledge of facts necessary to
answer the subcommittee's questions, you are
the head of JPM, and as such, are responsible
for the actions of those within your
organization. It is you who is ultimately
accountable for the activities to your
juniors, just as a general is held
responsible for the actions of the soldiers
beneath him.

While J. P. Morgan Chase has gained mightily,
the average American has suffered due to this
unAmerican activity. The suppression of the
gold price took away from the American
investor a barometer that would have shown
that something was wrong in the financial
markets, leaving investors clueless as to why
the stock market was plummeting. But worst of
all, your role in the manipulation of the
gold price has contributed to the devastation
to the economies of sub-Saharan Africa.

You should be aware that there are thousands
in the GATA army -- our active supporters --
who are waiting for you to recertify J.P.
Morgan's financial statements by August 14.
GATA has other documents prepared to follow.

Mike Bolser's report and this letter have
been sent to the following:

* Senator Levin, Chairman, Senate Permanent
Subcommittee on Investigations, fax 202-224-
1972.

* Commodities Futures Trading Commission,
Michael Gorham, Director of Market Oversight,
fax 202-418-5527.

* New York Attorney General Elliot Spitzer,
fax 518-402-2472.

* Securities and Exchange Commission Chairman
Harvey L. Pitt, fax 202-942-9634

* U.S. Bankruptcy Judge Arthur Gonzales, U.S.
Bankruptcy Court, 1 Bowling Green Plaza, New
York, NY 10004-1408.

*California Attorney General Bill Lockyer,
President-Elect, National Association of
Attorneys General, 750 First St. NE, Suite
1100, Washington, DC 2002, fax: 202-408-7014.

* Milberg Weiss Bershad Hynes amp; Lerach,
Attorneys at Law, Confidential Inquiries,
Enron Class Action Group, 1 Pennsylvania
Plaza, New York, NY 10119-0165, fax (212)
868-1229.

Sincerely,

WILLIAM J. MURPHY III, Chairman
Gold Anti-Trust Action Committee

* * *

INTRODUCTION OF MICHAEL BOLSER'S
REPORT ON MORGAN CHASE'S FAILURE
TO REPORT ITS GOLD DERIVATIVES

By Michael Bolser

The following three current documents
indicate that JP Morgan Chase has reported to
the Office of the Comptroller of the Currency
$45.234 billion in total gold derivatives as
assets under the control and use of JP Morgan
Chase. However, the firm has not accounted for
these gold derivative assets in either its
SEC form 10-Q dated March 31, 2002, or its 2001
Annual Report. This implies that JPM
shareholders have far greater risk than
disclosed by the company. ....

a href=http://www.gata.org/JPMFailsToReport.htmlhttp://www.gata.org/JPMFailsToR...

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-----------------------------------------

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