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.