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Pam and Russ Martens: JPMorgan, Citibank hold 90% of all gold and other precious metals derivatives held by U.S. banks
By Pam and Russ Martens
Wall Street on Parade
Wednesday, June 29, 2022
Last Tuesday the U.S. Office of the Comptroller of the Currency released its quarterly report on derivatives held at the megabanks on Wall Street. As we browsed through the standard graphs that are included in the quarterly report, one graph jumped out at us. It showed a measured growth in precious metals derivatives at insured U.S. commercial banks and savings associations over the past two decades and then an explosion in growth between the last quarter of 2021 and the end of the first quarter of this year.
In just one quarter, precious metals derivatives had soared from $79.28 billion to $491.87 billion. That’s a 520% increase in a span of three months.
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Having studied these quarterly reports since the 2008 financial crash, we knew where to head next. We went to the graphs in the OCC report showing the breakdown of different categories of derivatives at specific banks. Table 21 showed that precious metals contracts at JPMorgan Chase had spiked to $330.123 billion as of March 31, 2022. The same table showed that Citigroup’s insured commercial bank, Citibank, held $114.148 billion in precious metals derivatives. ...
JPMorgan Chase is the last bank in the U.S. that should have a $330 billion involvement in precious metals. On September 29, 2020, the U.S. Department of Justice charged JPMorgan Chase with rigging the precious metals market and charged it with a criminal felony count, to which it admitted. According to the Justice Department, the rigging occurred for more than eight years, from March of 2008 to August of 2016, and involved "tens of thousands" of incidents. ...
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