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U.S. May Charge JPMorgan For Power Market Manipulation


(Reuters) - The regulator of U.S. power markets appears likely to pursue manipulation charges against JPMorgan Chase & Co , analysts said, after a New York Times report on the agency's document that seemed to lay out its case.

The Times said on Friday it reviewed a confidential, 70-page government document that the U.S. Federal Energy Regulatory Commission (FERC) sent to JPMorgan in March, which alleged the bank manipulated the power market in California and Michigan in 2010 and 2011.

FERC investigators found JPMorgan devised "manipulative schemes" that transformed "money-losing power plants into powerful profit centers," the Times reported, citing the document. It said the bank has until mid-May to respond.

It has been clear since last summer that FERC was pursuing a deep enquiry on JPMorgan's trading activities, the latest in a string of FERC investigations that have rattled the U.S. power market and - in the case of rival bank Barclays Plc - concluded with $470 million in proposed penalties.

FERC has not moved to publicly charge JPMorgan, but experts said that now seemed likely.

"FERC staff would not have gone to the trouble of putting together a 70-page document without a case. If they have gotten this far they will likely pursue it," said Susan Court, a former senior lawyer at FERC who is principal of SJC Energy Consultants LLC in Arlington, Virginia.

The document also criticized Blythe Masters, JPMorgan's head of global commodities and former chief financial officer, saying she "falsely" denied under oath that she was aware of schemes carried out by a group of energy traders in Houston, according to the Times.

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Politicians need to maintain the Illusion of control

JP Morgan will get a hand slap & paltry fine 1-5% of their profits from this activity then continue with business as usual.

Its just a PR trick to maintain the illusion that politicians are in control.


"Take hold of the future or the future will take hold of you." -- Patrick Dixon

Wonder of Ron Paul knows anything?

she "falsely" denied under oath that she was aware of schemes carried out by a group of energy traders in Houston, ??

This Is Less Believable Than The Thread Below It

That claims that •The Illuminati are Alien-Human Shapeshifting Hybrid Reptillians Who Drink Blood at Bohemian Grove


OK the worst that happens.

Government fines JP. But Congress guarantees JP 6% profit on paid in Reserves, after expenses. The fine is an expense.

Anything above 6% is paid to US Treasury as a franchise tax.

Chances are this will make a splash, people will believe it happened because it should.

Regulators will take a bow and ask for more regulations. All because they have a good PR crew paid for by taxpayers.

All this nonsense is ended by repealing the Federal Reserve Act of 1913.

Free includes debt-free!

yea right...

even IF JP is fined all Jamie Dimon needs to do is to call helicopter Ben and tell him to print up some fresh FRN's and send them over and Ben will do as told. It is a rigged deal.

I am pretty sure...we are not going to be able to vote our way out of this thing. Good Luck.

As we're reaching the final

As we're reaching the final end game, the US government has a history of turning it's back on former allies and throwing them under the bus.

Just ask the Mujahideen or Saddam. One minute they are a partner...then can quickly become a mortal enemy.

“Let it not be said that no one cared, that no one objected once it’s realized that our liberties and wealth are in jeopardy.”
― Ron Paul

I suspect this is going on idustry wide

The depression is killing demand for electricity for most of the regions. Coal can't compete with gas plants and nuclear plants are on the decline. Layoffs in the utilities are canaries in the coal mine. This is a can of worms.

"Give a man a gun, and he could rob a bank. Give a man a bank, and he could rob the world."