The ongoing allegations against HSBC Holdings Plc (NYSE:HBC) and JPMorgan Chase & Co. (NYSE:JPM) were boosted, as another lawsuit was filed against the two companies in reference to accusations they manipulated silver futures and options prices for financial gain.
What vehicle was allegedly used to attain the price manipulation was what is called "spoof" orders.
How they work is a financial institution submits "a large order which is not executed but influences prices and is then withdrawn before it reasonably can be executed."
The first complaint against the two banks, filed by investor, Peter Laskaris, said this, "These price changes directly result, at least in one substantial part, from defendants' reduction in their concentration and other reductions of their unlawful activities in the silver markets since the government investigation."
The second suit was filed on Wednesday, October 27, basically making the same allegations of the original lawsuit.
Filed on behalf of Brian Beatty, claims the two banks attempted to game the system by taking huge short positions in silver futures contracts in order to hold prices down.
Silver prices have allegedly soared by 50 percent since the banks lowered their trading in silver futures when it became public concerning what they were doing.
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