arabtoday
Last Updated : GMT 21:44:18
Arab Today, arab today
Arab Today, arab today

JPMorgan in $410m power trading settlement

Arab Today, arab today

Arab Today, arab today JPMorgan in $410m power trading settlement

New York - AFP

Banking giant JPMorgan Chase Tuesday agreed to pay a $410 million settlement to resolve US charges that it manipulated power prices in California and the Midwest. JPMorgan will pay a civil penalty of $285 million to the US Treasury and disgorge $125 million in unjust profits, the Federal Energy Regulatory Commission said in a statement. The settlement is among the largest on record for FERC. The settlement enables JPMorgan to put to rest one of several lingering regulatory issues and comes as the bank explores exiting the physical commodities business amid rising political criticism of giant banks. FERC Commissioner Tony Clark said the agreement \"sends a strong signal\" against market manipulation. Clark said the case also was an instance of an investigation subject striving to \"obfuscate the true intent of their business strategies as a litigation posture for dealing with their regulators.\" A JPMorgan spokesman had no comment on Clark\'s remarks. The bank said in a statement that it \"is pleased to have reached an agreement with FERC to put this matter behind it.\" The bank has said it has already taken reserves to pay for the settlement and will not need to find additional resources. The agreement follows allegations that JPMorgan traders engaged in \"market manipulation\" in a series of incidents. In one of the alleged schemes, JPMorgan took advantage of \"make whole\" pricing rules in the day-ahead market that are intended to allow power producers to recover all of the costs of their power even if it is above market costs. FERC said JPMorgan gamed the system by posting bids in the day-ahead market that were accepted and then offering bids the following day that it knew were too high to be accepted; the bank would still get the payments under the rules. JPMorgan\'s \"purpose in submitting the bids was not to make money based on market fundamentals, but to create artificial conditions\" that would lead to premium payments, FERC said. The scheme distorted the broader electricity market, FERC added. The settlement comes only days after JPMorgan announced that it was pursuing \"strategic alternatives\" for its physical commodities business, including a possible sale or strategic partnership. US lawmakers have spotlighted banks\' involvement in physical commodities in recent weeks amid concerns that their role can distort markets and leave consumers vulnerable to market manipulation. The criticism is part of a growing political hostility towards banks that are sometimes seen as \"too big to fail\" or \"too big to jail.\" An official of brewing company MillerCoors told a Senate panel last week that aluminum consumers last year paid an additional $3 billion in expenses because of delays in delivering aluminum from aluminum storage facilities controlled by large financial players, including Goldman Sachs. Senator Sherrod Brown, who chaired last week\'s hearing, said the expansion of financial players into physical commodities \"has been accompanied by a host of anti-competitive activities: speculation in the oil and gas markets; inflated prices for aluminum and potentially copper and other metals; and energy manipulation.\" The Federal Reserve recently said it is reevaluating a 2003 policy that allows banks to own physical commodity assets.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today jpmorgan in 410m power trading settlement Arab Today, arab today jpmorgan in 410m power trading settlement

 



Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today Ajman Tourism launches time capsule

GMT 13:17 2016 Friday ,25 November

Ajman Tourism launches time capsule
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today US-led coalition admits 54 deaths

GMT 08:47 2016 Friday ,02 December

US-led coalition admits 54 deaths
Arab Today, arab today French satire mag hits Germany

GMT 09:52 2016 Thursday ,01 December

French satire mag hits Germany

GMT 21:07 2016 Thursday ,01 December

Chinese Steel Giant Established Following Key Merger

GMT 17:01 2016 Wednesday ,30 November

Rotana to manage, operate Cayan Cantara Project in Dubai

GMT 16:26 2016 Wednesday ,30 November

Uber defends business model

GMT 15:31 2016 Wednesday ,30 November

PIF buys 50% stake in Gulf food giant Americana
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Dino-killing crater shows clues

GMT 14:43 2016 Thursday ,24 November

Dino-killing crater shows clues
Arab Today, arab today Punk memorabilia torched

GMT 13:52 2016 Monday ,28 November

Punk memorabilia torched
Arab Today, arab today Green groups pressure Spain

GMT 13:01 2016 Thursday ,01 December

Green groups pressure Spain
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today To find German funny bone

GMT 12:45 2016 Tuesday ,29 November

To find German funny bone
Arab Today, arab today Car manufacturers to power Europe

GMT 13:01 2016 Tuesday ,29 November

Car manufacturers to power Europe

GMT 08:49 2016 Monday ,28 November

Israeli Arab rapper's music provokes

GMT 11:55 2016 Monday ,21 November

Amal Al-Qubaisi attends reception

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 12:39 2016 Friday ,25 November

Arctic 9-12C above normal

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 09:35 2016 Saturday ,19 November

Hyperloop One settles co-founder

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday