Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/30/2013 (8 months ago)

Catholic Online (www.catholic.org)

Company will pay $410 million for manipulating energy in California, Michigan

JPMorgan Chase has agreed to pay $410 million to the nation's energy regulator. The payout is a settlement that traders in it Houston offices manipulated electricity markets in the states of California and Michigan. The decision will not directly penalize JPMorgan Chase executives.

The payout is a settlement that traders in it Houston offices manipulated electricity markets in the states of California and Michigan. The decision will not directly penalize JPMorgan Chase executives.

The payout is a settlement that traders in it Houston offices manipulated electricity markets in the states of California and Michigan. The decision will not directly penalize JPMorgan Chase executives.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

7/30/2013 (8 months ago)

Published in U.S.

Keywords: JPMorgan Chase, Michigan, California, energy rates, manipulation


LOS ANGELES, CA (Catholic Online) - The agreement is a record settlement for the regulator, the Federal Energy Regulatory Commission, which has ramped up its policing of Wall Street trading in recent months.

"We are pleased to put this matter behind us," Brian Marchiony, a spokesman for JPMorgan says. "Due to reserves previously set aside, this settlement will not have a material impact on earnings."


The commission falling short of penalizing individual JPMorgan executives is a reversal of a decision made earlier this year. At that time, the agency warned JPMorgan that it might seek to sanction Blythe Masters, the influential leader of the bank's commodities business. Investigators had also originally planned to recommend that the agency hold three of her employees "individually liable."


The accusations of market manipulation initially surfaced this spring in a confidential commission document. The document, a warning that investigators would recommend that the agency pursue civil charges, had originally concluded that Ms. Masters gave "false and misleading statements" under oath.


From the outset, JPMorgan argued that Ms. Masters never made false statements.


The controversy began after JPMorgan originated from its rights to sell electricity from power plants that it acquired after the bank took over Bear Stearns in an emergency rescue in 2008.


The power plants owned by the bank at that time were outdated and inefficient. Traders in Houston found a work around. In order to transform the power plants into profit generators, the agency said, JPMorgan's traders adopted eight different "schemes" from September 2010 to June 2011.


Some of the strategies included electricity at prices that appeared falsely attractive to state energy authorities. Authorities in California and Michigan then made excessive payments that helped drive up energy prices, the regulator said.


As part of this week's settlement, JPMorgan will pay a civil penalty of $285 million to the Treasury Department. JPMorgan will also pay $125 million in "unjust profits," the energy commission says. That money will go to rate payers in both California and the Midwest, where the agency said JPMorgan's trading practices drove up prices for electricity.


The bank must also make annual reports to the commission for three years detailing its power business in the U.S. under the terms of the agreement. While JPMorgan admitted to the facts of the trading strategies, outlined in the settlement, the bank did not admit or deny wrongdoing.


The case is the regulator's latest crackdown on a big bank. In January, the commission reached a $1.6 million settlement with Deutsche Bank involving accusations of improper trading in California. 


---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for April 2014
Ecology and Justice:
That governments may foster the protection of creation and the just distribution of natural resources.
Hope for the Sick: That the Risen Lord may fill with hope the hearts of those who are being tested by pain and sickness.



Comments


More U.S.

Alabama Supreme Court Recognizes Child in the Womb Has Fundamental Rights

Image of The Alabama Supreme Court

By Deacon Keith Fournier

Because a human life with a full genetic endowment comes into existence at the moment of conception, the self-evident truth that all men are created equal and are endowed by their Creator with certain unalienable rights encompasses the moment of conception. Legal ... continue reading


Help Make the Story of the Serial Killer/Abortionist Kermit Gosnell Into a Movie Watch

Image of

By Deacon Keith Fournier

In 1852, the great abolitionist leader Frederick Douglass was invited to speak on the Fourth of July and delivered the now famous speech entitled What to the Slave is the Fourth of July. Here is a stirring quote from that famous speech: 'For it is not light that ... continue reading


Their Eyes Were Opened: Walk With Jesus on the Road to Emmaus Watch

Image of On the Road to Emmaus: In the light of the encounter with the Lord in the breaking of the bread, their eyes were opened. So it is meant to be with each one of us. The Holy Eucharist is more than a commemoration; it is an invitation into communion with the Living God - right now because Jesus Christ is Risen from the dead and walks with us on the road of life.

By Deacon Keith Fournier

We are those disciples on the road to Emmaus, living our lives in the real world, walking along with Jesus who is always there accompanying us on the road, whether we recognize Him or not. He listens to us, and understands us, because he became like us, in "all ... continue reading


Made for Beauty: Liturgy and Music

Image of

By Deal W. Hudson

Some might flinch at my use of the word "satisfying" to describe a liturgy, but I used it deliberately because I want to think aloud about the fact that we were made for beauty as much as we were made for goodness and truth.  To be satisfied by the shape, ... continue reading


'COME AND TAKE IT' Texas AG blasts BLM scheming to seize state land, threatens fight Watch

Image of Texans are rallying against the federal government and its habitual overreach.

By Catholic Online (NEWS CONSORTIUM)

A major land war between the Bureau of Land Management and the state of Texas is brewing as Texas lawmakers push back against the feds plan to seize 90,000 acres of land along the Texas/Oklahoma border. AUSTIN, TEXAS (Catholic Online) - The Bureau of Land Management ... continue reading


SHOCKING NEW TWIST: Autistic boy defends teenage girls who filmed his sexual assault Watch

Image of The parents of the victim are insistent that they want their son's abuser, 17-year-old Lauren A. Bush to be tried as an adult.

By Catholic Online (NEWS CONSORTIUM)

Abused beyond belief by two teenage girls, who filmed their despicable activities with their cellphones, a 16-year-old autistic boy now says he doesn't want to press charges against them - concerned that it would damage their - "friendship?" LOS ANGELES, CA ... continue reading


Time to Live the Easter Way of Life Watch

Image of Easter is more than a Day; it is a way of living our lives in Jesus Christ. Darkness has been scattered by the Light which broke forth from that empty tomb. That Light is meant to infuse our daily lives with the radiance of Resurrected love.

By Deacon Keith Fournier

The early Christians lived their lives in the Lord, for the sake of the world. They exhibited a holy boldness; because they internalized the faith they professed and allowed it to transform every aspect of their lives. They experienced the transforming power of ... continue reading


50,000-strong OK Militia declares they will resist federal takeover attempts Watch

Image of The Oklahoma Militia is ready to defend property against unlawful federal seizure.

By Catholic Online (NEWS CONSORTIUM)

An Oklahoma militia which claims the allegiance of 50,000 members has sided with Nevada rancher Cliven Bundy in his recent clash against the feds. Although the standoff appears to be over, and is not likely to resume, the militia says it is ready to defend the rights ... continue reading


BLOODY EASTER WEEKEND IN CHICAGO: Six children shot in widespread violence Watch

Image of Five of the six children wounded, aged from 11 to 15 years, were shot during a drive-by shooting Sunday night.

By Catholic Online (NEWS CONSORTIUM)

With 36 people wounded, and nine people dead, it was one of the most violent Easter weekends in Chicago within recent memory. Far more shocking was the fact that six young children were among those injured. Gang violence remains prevalent on Chicago's windy ... continue reading


Militant atheist organization seeks to ban schools from reciting the Pledge of Allegiance Watch

Image of The AHA says that the line

By Catholic Online (NEWS CONSORTIUM)

An organization of militant atheists is suing a New Jersey school district of discrimination, on the behalf of a family who take offense to the line "Under God," within the Pledge of Allegiance. LOS ANGELES, CA (Catholic Online) - The lawsuit against the ... continue reading


All U.S. News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Acts 3:11-26
11 Everyone came running towards them in great ... Read More

Psalm, Psalms 8:2, 5, 6-7, 8-9
2 even through the mouths of children, or of babes in ... Read More

Gospel, Luke 24:35-48
35 Then they told their story of what had happened on ... Read More

Saint of the Day

Saint of the Day for April 24th, 2014 Image

St. Fidelis of Sigmaringen
April 24: Franciscan Capuchin martyr. He was born Mark Rey is Sigmaringen, ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter