Fresh off the heels of the passage of financial reform that gives the Commodity Futures Trading Commission broad new powers, one of its commissioners is publicly calling on the regulator to step up an ongoing investigation into the silver market.
The statement by Commissioner Bart Chilton came during a CFTC hearing yesterday at which the regulator was exploring the implementation of its new oversight responsibilities.
According to The Wall Street Journal (link below), the regulator is currently in the midst of investing a former trader for JPMorgan who allegedly attempted to manipulate the silver market. However, the regulator has a long history with the metal, dating to the infamous Hunt brothers and their alleged attempt to corner the market in silver in the early 1980s.
The recent financial industry reform legislation known as the Dodd-Frank Act lowered the CFTC burden of proof in manipulation cases, which may grease the skids for a continued look at alleged silver market manipulation.