Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/30/2013 (2 years 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.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

7/30/2013 (2 years 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for July 2015
Universal:
That political responsibility may be lived at all levels as a high form of charity.
Evangelization: That, amid social inequalities, Latin American Christians may bear witness to love for the poor and contribute to a more fraternal society.



Comments


More U.S.

Is Pope Francis going to endorse...BERNIE SANDERS?! Watch

Image of Many have said the Bernie Sanders aligns best with Pope Francis' positions on important issues, but they'd be wrong. Pope Francis is neither Republican nor Democrat, he is Catholic and no candidate matches him on all of the issues. Candidates who care about the Catholic vote would do well to heed his words when he visits in September.

By Marshall Connolly (NEWS CONSORTIUM)

The field of 2016 presidential contenders would do well to look over their shoulder and spend some time thinking about someone who could make a difference in their races -Pope Francis. In just a matter of weeks Pope Francis will come to Philadelphia and he will command ... continue reading


UNBELIEVABLE ACADEMIC RANT: Rutgers University professor declares U.S. is far more brutal than Islamic State Watch

Image of Academic Deepa Kumar is now drawing attention to a new rant that says that the U.S. is far more brutal than Islamic State. She says that U.S. military intervention in the Middle East has cost the lives of 1.3 million people.

By Catholic Online (NEWS CONSORTIUM)

Rutgers University professor Deepa Kumar, no fan of United States foreign policy, has spoken out against domestic policies before. Kumar is now drawing attention to a new rant that says the U.S. is far more brutal than Islamic State. She says that U.S. military ... continue reading


Jennifer Hartline: In Memory of Noah Wilson Watch

Image of While we had to accept that most terrible sight -- a beloved little child lying in a casket -- Noah's vision is the Beatific. Because of the death and resurrection of our Lord Jesus Christ, Noah lives forevermore. Death has not had the final word. Cancer has certainly not had the victory.

By Jennifer Hartline

Noah loved baseball, especially the Kansas City Royals. He loved superheroes, Legos, Ninja Turtles, and making the silliest faces for everybody. When he began his chemo, and blood tests and needles became a frequent, regular part of his life, he decided those ... continue reading


J. Matt Barber: This is Your Nuremberg, Planned Parenthood Watch

Image of Cecile Richards, president of the Planned Parenthood Federation is the main defender of the activities being engaged in by Planned Parenthood

By J. Matt Barber

Whereas the Nazis were responsible for the wholesale murder of more than 6 million Jews, those today who support the practice of abortion homicide are no less complicit in the systematic slaughter of 55-million-and-counting equally precious human beings post Roe ... continue reading


Staver and Fournier: Time for Civil Resistance and a New Alliance Watch

Image of We must stand up to unjust authority and openly declare that the Supreme Court is not the Supreme Being.

By Mat Staver and Deacon Keith Fournier

We stand together in affirming that marriage is between one man and one woman, intended for life, open to new life and formative of the family. The family is the first cell of civil society and must be protected from governmental abuse and interference. No Court, ... continue reading


Meet the nun who calmed Wild West bad man Billy the Kid: Sister Blandina Segale Watch

Image of

By Mary Rezac, CNA/EWTN News

Billy the Kid, a notorious bank and stagecoach robber of the Wild West, met his match in the most unlikely of people when he met Sister Blandina Segale. Santa Fe (CNA/EWTN News) - According to legend, and to Sr. Blandina's journal and letters, one of Billy the ... continue reading


New York Police Department reach extraordinary lengths to insure Pope's safety during visit Watch

Image of Quite unlike his predecessors, Pope Francis insists on meeting the faithful up close and personal. This presents special challenges to the NYPD.

By Catholic Online (NEWS CONSORTIUM)

The symbol of Christianity worldwide, Pope Francis' trip to New York City in late September presents a special challenge to the New York Police Department. The NYPD is going all out in order to protect the pontiff, almost to the point where "rush hour commuters ... continue reading


Mexican drug cartels fueling U.S. heroin epidemic Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

The insidious Mexican drug cartels are having a massively detrimental effect on U.S. communities. The cartels have flooded the cities and suburbs with far more potent, less expensive heroin, sending overdose deaths skyrocketing. LOS ANGELES, CA (Catholic Online) - ... continue reading


African-American churches frequently targeted by arsonists Watch

Image of African American churches are targeted by arsons more than any other houses of worship. The ATF's results have been reported to a national database of church fires.

By Catholic Online (NEWS CONSORTIUM)

There have been 29 cases of churches being torched by arsonists in the United States this year alone. Frequently, African-American churches are set alight by arsonists because of racism, religious intolerance, or vandalism. LOS ANGELES, CA (Catholic Online) - "Anytime ... continue reading


Planned Parenthood threatened to be exposed with EIGHT MORE undercover videos Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

The series of unfortunate events will keep on rolling for Planned Parenthood as the founder of the Center for Medical Progress (CMP), David Daleiden, shared with conservative radio host Sean Hannity that there are eight more undercover videos that will reveal Planned ... 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, Numbers 11:4-15
4 The rabble who had joined the people were feeling ... Read More

Psalm, Psalms 81:12-13, 14-15, 16-17
12 So I left them to their stubborn selves, to follow ... Read More

Gospel, Matthew 14:13-21
13 When Jesus received this news he withdrew by boat ... Read More

Saint of the Day

Saint of the Day for August 3rd, 2015 Image

St. Lydia Purpuraria
August 3: Lydia Purpuraria (1st century) was born at Thyatira (Ak-Hissar), ... 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