JPMorgan To Pay $410 Million Power Trading Penalty

@AFP

NEW YORK CITY, New York (AFP) – Banking giant JPMorgan Chase agreed to pay a $410 million settlement to resolve U.S. charges that it manipulated power prices in California and the Midwest, the bank and regulators said Tuesday.

JPMorgan will pay a civil penalty of $285 million to the U.S. Treasury and disgorge $125 million in unjust profits, the Federal Energy Regulatory Commission said in a statement. The bank did not admit or deny the allegations.

JPMorgan “is pleased to have reached an agreement with FERC to put this matter behind it,” the bank said in a statement.

The agreement follows allegations that JPMorgan traders engaged in 12 instances where the bank made bids that forced independent system operators to pay JPMorgan at above-market rates. The alleged incidents occurred from September 2010 through November 2012.

JPMorgan shares were up 0.5 percent in pre-market trading.

JPMorgan in recent months has moved to resolve a number of regulatory issues that have given critics ammunition after JPMorgan suffered a controversial $6.2 billion trading loss in 2012.

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Dave McCormick

Dave McCormick

David McCormick, who is Pennsylvania's presumptive Republican U.S. Senate nominee, has often suggested he grew up poor in a rural community. But a new report finds that his upbringing was far more affluent than he's suggested.

Keep reading...Show less
Reproductive Health Care Rights

Abortion opponents have maneuvered in courthouses for years to end access to reproductive health care. In Arizona last week, a win for the anti-abortion camp caused political blowback for Republican candidates in the state and beyond.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}