[LegendHasIt]

They neglected to give Joe his 10%?

[alexander_busek]

As part of their market manipulation scheme, Smith and Nowak placed orders for precious metals futures contracts that they intended to cancel before execution to drive prices on orders they intended to execute on the opposite side of the market.

Understood - but would like to know how, exactly, they intended to profit from the artificially boosted precious metal prices.

J.P. Morgan obviously profited directly, in that they could then charge higher trading fees based on the (slightly) higher prices - like charging 3% on an order of 50,000 ounces of gold at the artificially inflated price of $2,000 / oz. - instead of at the "real" price of, say, $1,990 / oz., thus yielding an additional profit of 3% x $500,000 = $15,000. So that would have been the day's "haul?!" Peanuts!

Regards,

[DocRock]

Bookmark

[sauropod]

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[dfwgator]

Are they going to white-collar resort prison or to Federal “Pound Me In The Ass” prison?