Loading ...Authorized by the Fed.
I believe one of the things they’re playing is a old trick to unload to people who think they can make a quick buck but putting in multi orders starting low getting bigger then when lower are bought they drop the higher amounts. One of the tricks they play.
In a investigation while one trader is living with his parents for goodness sake: cahoots with our friends the Fed.
JPMorgan bought Bear Stearns in a marriage arranged by the U.S. Federal Reserve during the height of the financial crisis in 2008.
Already, people inside JPMorgan were using deceptive trading methods, prosecutors said. Their new colleagues brought new ones. In May, the same month the deal was completed, Smith executed the deceptive-layering technique, the indictment said.
The new style involved the layering of multiple deceptive orders at nine different prices in rapid succession that together were larger than the portion visible to other traders in the marketplace, known as “iceberg orders.” Prosecutors said this trading style “took hold of the precious metals desk” at JPMorgan and was adopted by Nowak and other conspirators.
The indictment lays out dozens of trades that prosecutors allege are just a tiny fraction of the the thousands of transactions the conspirators made as part of the scheme. The charges also pull from electronic chats between the traders that prosecutors allege serve as examples of the criminal purpose behind the deals.
In an electronic chat on Feb. 24, 2009, less than a year after Trunz arrived from Bear Stearns, he had the following conversation with a co-conspirator identified only as “CC-7” in the filing:
Trunz: so you know its gregg bidding up on the futures trying to get some off
https://www.americanbanker.com/articles/jpmorgan-inherited-spoof-method-from-bear-stearns-us-says