Wednesday, July 17, 2013

Barclays Fined $453M for Manipulating Energy Markets (Updated)

Another financial market conspiracy. The Daily Mail reports:

Barclays and four of its traders have been fined $453million (£298million) by US regulators for manipulating power prices - just a year after the bank was hit with a then record £290million for rigging Libor.

In a fresh blow for the scandal-hit bank, the Federal Energy Regulatory Commission also ordered the lender to pay at least $34.9million (£23million) of 'unjust profits' to the low-income home energy assistance programmes of Arizona, California, Oregon and Washington.

FERC, which upheld fines first imposed in October, accused Barclays and its traders of a 'co-ordinated and intentional effort' to fix electricity prices in California and other western US states between November 2006 and December 2008.
Update: JP Morgan rumored to be preparing to pay fines of $1 billion for manipulating energy markets.

U.S. regulators and J.P. Morgan Chase are close to a monster settlement over allegations that the banking giant tampered with electricity markets in California and the Midwest, the Wall Street Journal reports.

Sources told the Journal the deal could come in close to a staggering $1 billion, the largest payout in the history of the Federal Energy Regulatory Commission (FERC), which overseas power trading markets.

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