U.S. energy regulators hit JPMorgan with $410mln in penalties

PanARMENIAN.Net - U.S. energy regulators are hitting JPMorgan Chase & Co. with $410 million in penalties after accusing it of manipulating electricity prices in California and the Midwest, The Associated Press reported.

The Federal Energy Regulatory Commission says the bank used improper bidding strategies to squeeze excessive payments from the agencies that run the power grids in California and the Midwest.

The agency says JPMorgan has agreed to the penalty, although it disputes the violations. The penalty includes $285 million for the federal government, and $125 million for ratepayers. FERC’s enforcement staff said its investigation had found improper trading practices were used at JPMorgan Ventures Energy Corp.

The agency recently levied a $453 million penalty on Barclays, Britain’s second-largest bank, for manipulating electricity prices in California and other western states. Barclays is disputing the allegations.