This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23506803
The article has changed 4 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
JP Morgan pays $410m to settle US energy case | JP Morgan pays $410m to settle US energy case |
(35 minutes later) | |
JP Morgan's energy unit has agreed to pay $410m (£268m) to settle charges from the top US energy regulator that it manipulated energy markets. | JP Morgan's energy unit has agreed to pay $410m (£268m) to settle charges from the top US energy regulator that it manipulated energy markets. |
The Federal Energy Regulatory Commission (FERC) agency alleged JPMorgan's trading practices drove up prices for electricity, mainly in California and the Midwest. | The Federal Energy Regulatory Commission (FERC) agency alleged JPMorgan's trading practices drove up prices for electricity, mainly in California and the Midwest. |
The fine is the second largest penalty in FERC history. | The fine is the second largest penalty in FERC history. |
The bank did not admit any wrongdoing as part of the settlement. | The bank did not admit any wrongdoing as part of the settlement. |
JPMorgan said it was "pleased to have reached an agreement with FERC to put this matter behind it.'" | |
JPMorgan spokesman Brian Marchiony said the settlement would "not have a material impact on our earnings" because the bank had previously set aside reserves for the case. | JPMorgan spokesman Brian Marchiony said the settlement would "not have a material impact on our earnings" because the bank had previously set aside reserves for the case. |
FERC claimed JPMorgan's energy unit used five "manipulative bidding strategies" in California between September 2010 and June 2011, and three in the Midwest from October 2010 to May 2011. | |
Under the deal, the bank must also make annual reports to the commission for three years detailing its power business in the United States. | Under the deal, the bank must also make annual reports to the commission for three years detailing its power business in the United States. |
JPMorgan has already sold the rights to buy the gas and sell the power from its California plants. | JPMorgan has already sold the rights to buy the gas and sell the power from its California plants. |
The energy rigging case is the latest embarrassment to hit JP Morgan. Last year, the bank suffered a $6.2bn (£4bn) loss after trades made by the so-called London Whale turned out to be bad. | |
Last year FERC fined Barclays $453m (£300m) for allegedly manipulating electricity prices. Barclays protested FERC's findings, but US regulators upheld the fine earlier this month. |