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Monday, December 09, 2019 {{ new Date().getDay() }}

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.

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Jeff Danziger lives in New York City. He is represented by CWS Syndicate and the Washington Post Writers Group. He is the recipient of the Herblock Prize and the Thomas Nast (Landau) Prize. He served in the US Army in Vietnam and was awarded the Bronze Star and the Air Medal. He has published eleven books of cartoons and one novel. Visit him at DanzigerCartoons.