Barclays wins order to put $488m fine on hold

Barclays Bike

Barclays won an order by a federal judge putting on hold a $488m fine for allegedly gaming U.S. energy markets while the bank challenges a lawsuit by the Federal Energy Regulatory Commission.

Bloomberg reports that U.S. District Judge Troy L. Nunley in Sacramento, California, said Thursday the delay is justified to give him time to consider Barclays’ requests to throw out the case or transfer it to the southern district in New York.

Barclays argued the FERC lacks authority to issue fines based on alleged manipulation of commodity futures contracts. If the case isn’t dismissed, Barclays said it should be moved to New York because that’s where the alleged manipulation happened and where most of the witnesses live.

Barclays was sued by the FERC for failing to pay the fine 60 days after it was imposed. Barclays and four former traders from 2006 to 2008 manipulated trades on contracts to deliver physical electricity in western U.S. power markets with the intent of moving an index to benefit the bank’s other bets on financial swaps, the FERC alleged.

To access the complete Bloomberg article hit the link below:

Barclays Wins Order Putting $488 Million FERC Fine on Hold

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image: © Toby Jagmohan

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