By Jonathan Stempel
JPMorgan Chase & Co. and HSBC Holdings Plc were hit with two lawsuits on Wednesday by investors who accused them of conspiring to drive down silver prices and reaping an estimated hundreds of millions of dollars of illegal profits.
The banks, among the world’s largest, were accused of manipulating the market for COMEX silver futures and options contracts from the first half of 2008 by amassing huge short positions in silver futures contracts that are designed to profit when prices fall.
“Defendants reaped hundreds of millions of dollars if not billions of dollars in profits” from the conspiracy, one of the complaints said.
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Silver Manipulation Lawsuit Posted at GATA’s Internet Site
GATA (28 Oct 10)