U.S. authorities are investigating whether JP Morgan employees tried to impede a regulatory investigation into alleged manipulation of power markets.
A lucky escape ?
Barclays could face the threat of prosecution over Libor-rigging after US regulators confirmed they would be fining the bank $453m for allegedly manipulating electricity markets.
JPMorgan Chase, a firm whose reputation in Washington has eroded in a matter of months, is now moving to avert a showdown over accusations that it manipulated energy prices.
The Federal Energy Regulatory Commission (FERC) Tuesday ordered Barclays Bank and four of its traders to pay $453m in civil penalties for manipulating electric energy prices in California and other western markets between November 2006 and December 2008.
A JPMorgan Chase unit suspended from market-based power trading in California may be evading the ban through swap agreements with EDF Group and Cargill subsidiaries, the state’s grid operator said.
JPMorgan Chase just wanted the Federal Energy Regulatory Commission to run an inquiry into its California energy trading operation.
'It is full of salacious and inaccurate BS'.
The U.S. Federal Energy Regulatory Commission correctly found that traders for Barclays had gamed energy markets, agency staff said in a report backing $488m in penalties on the bank and its former traders.
A series of emails and instant messages between Barclays traders - peppered with colourful and obscene language - is at the heart of federal energy regulators' effort to impose record fines over a complex plan to manipulate California power markets.