J.P. Morgan Ventures Energy Corp. 'regrets and apologizes for its failure to address' the Federal Energy Regulatory Commission’s communications in an investigation of JPMorgan’s electricity trading in California and the Midwest, according to a filing Thursday. The FERC has threatened to suspend the company’s trading powers, a penalty JPMorgan said 'is not an appropriate or proportionate response' to the errors.
Bloomberg reports that JPMorgan also is under investigation by at least 11 agencies and a U.S. Senate panel related to disclosure of a multibillion-dollar trading loss at its chief investment office in London. The New York-based lender is still recovering from a wrong-way bet on credit derivatives that cost the bank about $6.25bn through the first nine months of this year, not including what the bank said was a 'modest' additional loss in the third quarter.
The FERC ordered the company on September 20th to show that it didn’t violate agency rules and said it may suspend JPMorgan’s authority to sell power and related services at market-based rates shouldn’t be suspended.
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