On the 11th of July, Rob Kientz, a financial analyst called out JP Morgan for ripping off the Gold and Silver markets. Kientz also added that three former employees of JP Morgan are on the firing line at the moment.
The names of the three employees in question are; Michael Nowak, Gregg Smith, and Jeffrey Rufo. Michael is a veteran head in the precious metal department, Gregg is a gold trader and Jeffrey is a hedge fund sales expert. These employees are well acquitted of the company’s investment practices.
Michael, Jeffrey, and Gregg have been charged with price manipulation, wire fraud, commodities fraud, and spoofing. These illegal acts doctored by JP Morgan spanned from 2008 to 2016.
Further reports claim that JP Morgan has been short-selling silver since 2006. While Bart Clinton held an internal investigation three years later, the investment bank was not found guilty at the time.
How Recent Accusations Will Affect JP Morgan
It is yet to be seen if JP Morgan will be acquitted once again, or if justice will be served to the financial giant. JP Morgan was founded in 2000, and the investment bank has grown to be the largest in the United States. The institution has assets worth close to 4 trillion dollars, making it the fifth largest bank in the world by its asset valuation.
If found guilty, the financial institution risks paying huge fines that will affect its standing in the financial ecosystem. More so, the company’s stocks may be affected negatively.
In the early days of cryptocurrency, JP Morgan was widely known as a strong opponent of digital assets. The company’s CEO and other associates of the institution have publicly bashed Bitcoin and crypto on several occasions.
More recently though, the company seems to be coming to terms with cryptocurrencies. The company now offers investment funds to clients in six different cryptocurrencies, including Bitcoin.
