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JP Morgan to Pay $1 Billion Fine for Spoofing. What Does That Mean for Markets?
JP Morgan Chase to pay $920 Million to Settle Trading Misconduct Allegation (CNN Business 2020)
If the market seems too good to be true, it’s probably because it is.
Certain asset classes (generally) have an inverse relationship with one another. If one goes up, the other typically goes down. For example, as stocks rise, gold / silver typically decline and vice versa.
Right now — all asset classes are basically inflated (stocks, real estate, gold / silver, and I think even treasury bonds).
This is largely because of the Federal Reserve pumping in liquidity into the market but also stretching their legal authority by taking on so much debt from otherwise healthy companies (as well as from companies that probably should be allowed to die).
Another possible explanation is market manipulation. We’ve seen this with stocks from bankrupt companies going up in spite of essentially being worthless (Ex: Hertz, etc).
Well now we know that at least some of these markets have been manipulated through spoofing. I thought it might be a few retail investors or perhaps a lone hedge fund guy here or there — but it turns out to be none other than JP Morgan which now has to be a $1 billion fine for…
