JPMorgan Chase & Co.
) can now heave a sigh of relief as a 2nd U.S. Circuit Court of
Appeals has dismissed a lawsuit against the bank, pertaining to
silver price fixing. The news was confirmed by Reuters on
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Earlier, in March 2013, the aforementioned case was turned down
by Manhattan U.S. District Judge Robert Patterson. However,
investors had appealed against the judgment.
It was alleged that in an attempt to maximize its profit,
JPMorgan had manipulated the price of silver from 2007 to 2010.
This resulted in huge losses for investors who traded in COMEX
silver futures and options contracts during the said period.
Investors accused JPMorgan of rigging the silver price downwards
to derive benefit from the huge short position that it maintained
in the market. The company was also imputed of engaging in "late
day trading", which though not illegal, is an unethical form of
While dismissing the case, the Circuit Court of Appeals stated
that the investors lacked substantial evidence to prove their
point. Further, the mere presence of considerable short positions
does not make JPMorgan guilty of wrongdoing.
Apart from JPMorgan,
HSBC Holdings plc
) was accused of price rigging. Notably, silver investors had
filed nearly 43 complaints against several banks in 2010 and
2011, which included the aforementioned company. Later, the
individual lawsuits were combined into one and eventually, HSBC
got respite from the same.
JPMorgan currently carries a Zacks Rank #3 (Hold). Some
better-ranked major regional banks include
Wells Fargo & Company
). Both these stocks have a Zacks Rank #2 (Buy).