FERC Sues JPMorgan (JPM) Unit Over Possible Power Manipulation
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How does the saying go: Ultimate power corrupts ultimately? Er, when in Rome..?
Being a banker is tough these days. Barclays just settled a case that it aimed to manipulate LIBOR rates, costing the firm about $160 million in fees and fines. Today, we have JPMorgan (NYSE: JPM) being sued by the U.S. Federal Energy Regulatory Commission (FERC) to disclose email it sent tied to an investigation of possible manipulation of power markets in California in the Midwest. The accusations were tied to JPMorgan Venture Energy Corp (JPMorgan VEC).
Given until the end of the day on July 13th, the Judge in the case -- U.S. District Judge Colleen Kollar-Kotelly in Washington -- said the bank will need to produce about 25 at-issue emails in "unredacted form or to submit them to the court for in camera review."
FERC is investigating into whether JPMorgan VEC used efforts in the mentioned markets "to extract excessive payments or above-market prices from and Midwest Independent Transmission System Operator Inc. and California ISO," according to Bloomberg.
So, July 13th is going to be extra exciting for JPMorgan now: it has second-quarter earnings, an update on its CIO unit, and now will need to submit case-changing emails or receive a massive fine and bad publicity.
The probe on JPMorgan VEC started last August, but the unit was officially sued today.
Shares are off about 4 percent in late Thursday trading.
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Being a banker is tough these days. Barclays just settled a case that it aimed to manipulate LIBOR rates, costing the firm about $160 million in fees and fines. Today, we have JPMorgan (NYSE: JPM) being sued by the U.S. Federal Energy Regulatory Commission (FERC) to disclose email it sent tied to an investigation of possible manipulation of power markets in California in the Midwest. The accusations were tied to JPMorgan Venture Energy Corp (JPMorgan VEC).
Given until the end of the day on July 13th, the Judge in the case -- U.S. District Judge Colleen Kollar-Kotelly in Washington -- said the bank will need to produce about 25 at-issue emails in "unredacted form or to submit them to the court for in camera review."
FERC is investigating into whether JPMorgan VEC used efforts in the mentioned markets "to extract excessive payments or above-market prices from and Midwest Independent Transmission System Operator Inc. and California ISO," according to Bloomberg.
So, July 13th is going to be extra exciting for JPMorgan now: it has second-quarter earnings, an update on its CIO unit, and now will need to submit case-changing emails or receive a massive fine and bad publicity.
The probe on JPMorgan VEC started last August, but the unit was officially sued today.
Shares are off about 4 percent in late Thursday trading.
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