JPMorgan in Talks to Settle Energy Manipulation Case for $500 Million
By JESSICA SILVER-GREENBERG and BEN PROTESS, NYT
JPMorgan Chase is aiming to settle accusations it devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” a deal that is expected to cost the bank, the nation’s largest, about $500 million.
JPMorgan and the regulator of the nation’s energy markets are still negotiating a potential fine, according to people briefed on the matter, and the talks are not yet final. The $500 million figure could shift as the two sides inch closer to a settlement, a potential record for the Federal Energy Regulatory Commission, or FERC.
The accusations against JPMorgan surfaced in a confidential government document, reviewed by The New York Times, that outlined a pattern of illegal trading in California and Michigan electric markets. The document also claimed one of JPMorgan’s most senior executives gave “false and misleading statements” under oath.
Investigators for FERC sent the document to the bank in March, a preliminary warning that they intended to recommend that the agency pursue an action against JPMorgan and the executive, Blythe Masters. The bank replied to the accusations in mid-May, the people briefed on the matter said, ultimately leading to settlement talks in recent weeks.
(More here.)
JPMorgan Chase is aiming to settle accusations it devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” a deal that is expected to cost the bank, the nation’s largest, about $500 million.
JPMorgan and the regulator of the nation’s energy markets are still negotiating a potential fine, according to people briefed on the matter, and the talks are not yet final. The $500 million figure could shift as the two sides inch closer to a settlement, a potential record for the Federal Energy Regulatory Commission, or FERC.
The accusations against JPMorgan surfaced in a confidential government document, reviewed by The New York Times, that outlined a pattern of illegal trading in California and Michigan electric markets. The document also claimed one of JPMorgan’s most senior executives gave “false and misleading statements” under oath.
Investigators for FERC sent the document to the bank in March, a preliminary warning that they intended to recommend that the agency pursue an action against JPMorgan and the executive, Blythe Masters. The bank replied to the accusations in mid-May, the people briefed on the matter said, ultimately leading to settlement talks in recent weeks.
(More here.)
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