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Rubin and Greenspan endorse gold!
9:45p EDT Thursday, May 20, 1999
Dear Friend of GATA and Gold:
I'm sorry to clutter your mailbox with two dispatches
tonight, but I just came upon this Reuters story about
the charges filed by the Commodity Futures Trading
Commission against, among others, Merrill Lynch and Co.
The CFTC charges that Merrill Lynch was part of a
scheme to corner the copper market.
I imagine that running copper prices UP offends the
government a lot more than running gold prices DOWN, so
don't expect CFTC action against anyone in the gold
market any time soon. Still, that the Wall Street
gangsters have done it in copper must raise suspicions
that they do it elsewhere.
Secretary, Gold Anti-Trust Action Committee Inc.
* * *
Thursday May 20, 12:11 pm Eastern Time
U.S. CFTC charges others in Sumitomo copper case
WASHINGTON, May 20 (Reuters) -- The U.S. Commodity
Futures Trading Commission said Thursday it filed a
complaint against Merrill Lynch and Co. Inc. and Global
Minerals and Metals for working with Sumitomo Corp. to
manipulate the world price of copper from October to
December 1995. Also charged with wrongdoing by the CFTC
were Global president R. David Campbell and Global's
chief copper trader Carl Alm. The CFTC alleged Global
quot;manipulated, cornered, and attempted to manipulate and
attempted to corner the copper market in 1995.quot;
The complaint also names New York City-based Merrill
Lynch amp; Co. and Merrill Lynch International Inc., as
well as London-based Merrill Lynch Pierce Fenner and
Smith Ltd, for aiding and abetting Global, Campbell,
and Alm in manipulating the world copper market.
Sumitomo paid a $125 million fine in May 1998 to settle
CFTC charges that the company manipulated the copper
market. The company also agreed to set up a $25 million
fund to reimburse investors hurt by the manipulation
scheme. The agency said Global acquired and maintained
a dominant and controlling position in London Metal
Exchange warehouse stocks of copper and withheld that
copper from the market. At the same time, the CFTC
said, Global purchased long copper futures contract
positions and quot;engaged in an elaborate scheme of
deception and false statements, which fostered the
manipulation.quot; Merrill Lynch aided in the manipulation
by providing quot;large sums of credit and financequot; that
Global and Sumitomo used to corner LME warehouse copper
stocks, the CFTC said.
The agency said it will hold a public hearing to
determine if the charges in the complaint are true.
Possible sanctions include fines of not more than the
higher of $100,000 or triple the monetary gain for each
violation. Merrill Lynch, in a statement, said the
CFTC's allegations are without merit.
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