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On April 5, 2012, JPMorganChase commodity executive Blythe Masters appeared
on CNBC, and she was questioned whether the bank is manipulating metals
markets?
Watch the interview here.
Masters’ response was,
"There's been a tremendous amount of speculation, particularly in
the blogosphere, on this topic," she told CNBC. "I think the
challenge is it represents a misunderstanding of the nature of our business.
... Our business is a client-driven
business where we execute on behalf of clients to achieve their financial and
risk-management objectives. ... We
have offsetting positions. We have no stake in whether prices rise or decline."
So Blythe Masters would
have us ALL believe that J.P. Morgue’s 76 Trillion derivatives position
– illustrated below - is ALL CLIENT DRIVEN:
 
source: Office of the Comptroller of the Currency
[OCC]
The Undoing of Blythe Masters and J.P. Morgan Chase
Perhaps Ms. Masters is
unfamiliar with [or conveniently forgets, perhaps?] the manner in which the
OCC gathers and presents data, namely, they gather and publish data submitted
by the banks themselves in submissions known as “Call Reports ”.
Here is what the OCC
tells us about “end users” or clients [or clients who want to be
identified, perhaps?] for derivatives, namely, THAT THERE ARE VIRUALLY NONE:
Source: Office of the
Comptroller of the Currency
You Cannot Have it Both Ways Blythe
This is EXTREMELY
INDICTING. The head of J.P. Morgue’s derivatives nightmare is telling
the world that their business is “customer driven” and on the
other hand – the OCC – whom J.P. Morgue reports to - is telling
us there are NO CUSTOMERS [or none that want to be identified] for these
hundreds of TRILLIONS of derivatives products?
The reality is that Blythe
Masters is telling a partial truth – in that J.P. Morgue’s
trading is customer driven; and partially misdirection in that Masters
refuses to acknowledge that J.P. Morgue’s client
“IS” THE Treasury [specifically, the Exchange Stabilization Fund,
or, ESF] of the United States of America.
It’s appropriate
– with this being Easter – that Blythe
Masters would lay-such-an-egg in the mainstream
press. Appropriately, it has landed squarely on her own
face.
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