Former JPMorgan traders jailed for market manipulation
The former head of the precious metals desk and main investor in the US bank JPMorgan Chase has been sentenced to prison for fraud, swindling and attempting to manipulate the market.
Michael Nowak, the bank’s gold and silver dealer, and investor Gregg Smith were sentenced yesterday by a Chicago court. Nowak received a sentence of one year and one day, while Smith received a sentence of two years.
Smith and Nowak, one of the strongest investors in the world’s precious metals markets, have gone to great lengths to manipulate prices to their advantage, using their positions, US Assistant Attorney General Nicole said in a statement. M. Argentieri.
THIS IS HOW THEY DAMAGED THE MARKET
Traders used to place bogus orders to raise or lower prices and then immediately cancel them before they were executed. In this way, the traders who affected the market prices made money by betting the opposite of the transaction they made afterwards.
Smith and Nowak used this technique to manipulate gold and silver prices for exactly 8 years, between 2008 and 2016.
Smith, Nowak’s conviction made it one of the largest market manipulation convictions ever handed down in the United States. Two former Deutsche Bank traders and two former Bank of America traders were also sentenced to one year in prison each.
Source: Sozcu
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
