Now that we have the new Republican House and the Agriculture subcommittee chair on side to kill or postpone the CFTC limits on metals, the hearing today is a farce and JPMorgan can take down G&S with impunity. They are even talking about grandfathering existing swaps so JPMorgan can never be prosecuted. Meanwhile Blythe Masters continues her dirty work at JPMorgan and pulled all G&S bids. Fishing lines are out this morning.

"CFTC Chairman Gary Gensler and fellow Democrat Chilton are scheduled to testify on position limits tomorrow at a House Agriculture subcommittee hearing. Gensler said on Dec. 9 that the CFTC may split a regulatory proposal between limits for spot month and limits for all other months combined. The agency may move “expeditiously” on the spot month proposal, he said. Regulators could also grandfather existing swaps and start the implementation of any proposed limits as of the enactment day of the new rules, Chilton said in his prepared remarks. The CFTC could identify the largest long and short positions in the markets and require that netted futures, options and economically equivalent swap positions be below “current accountability levels” for each commodity, he said.