JP Morgan settles case over energy price manipulation

31 July 2013

JP Morgan's energy unit has agreed to pay a substantial amount to settle charges from the Federal Energy Regulatory Commission (FERC) that it manipulated energy markets.

The company will now pay the regulator $410 million after it was alleged its trading practices resulted in high electricity prices in California from September 2010 to June 2011 and the Midwest between October 2010 and May 2011.

FERC alleged traders at JP Morgan's energy division created artificial conditions to increase the price of energy.

JP Morgan did not admit any wrongdoing as part of the settlement and said it was "pleased to have reached an agreement with FERC to put this matter behind it".

According to spokesman Brian Marchiony, the settlement would not affect earnings as the bank had previously set aside reserves for the case.

Under the settlement, the institution must also deliver annual reports to the commission for three years detailing its power business in the US.

By Claire Archer

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