Banks *still* behaving badly

Yesterday, the Federal Energy Regulatory Commission (FERC) — the independent agency responsible for  assisting consumers in “obtaining reliable, efficient and sustainable energy services at a reasonable cost through appropriate regulatory and market means” — released a notice on the allegations against a J.P. Morgan Chase affiliate. JPMC has been accused by  federal energy regulators, after a investigation that began approximately one year ago, of using “eight manipulative bidding strategies” to garner what the regulators deem to be “excessive payments” from electricity markets. In a nutshell, that’s market manipulation. It’s fraudulent.

The FERC “notice of alleged violations” disclosures preceded the settlement between JPMC and FERC, which is a $410 million fine to settle the charges. According to Business Insider, “under the agreement, JPMVEC will pay a civil penalty of $285 million to the U.S. Treasury and disgorge $125 million in unjust profits. The first $124 million of the disgorged profits will go to ratepayers in the California Independent System Operator (California ISO), which operates the California electricity market. The other $1 million will go to ratepayers in the Midcontinent Independent System Operator (MISO).”

Energy Markets and JP Morgan Chase

Image: Flicker / Hal Bergman

Of course, J.P. Morgan Chase declined to formally comment and, as many would expect, the bank has denied wrongdoing in the past. In this case, the bank neither denies nor admits to the violations.

This incident is yet another in a long string of fraudulent activities; J.P. Morgan Chase is hardly unfamiliar with repeated bad behaviour. Whether it’s LIBOR scandals and rogue traders, or wrongful foreclosures on homeowners the bank ends up denying   wrongful actions and paying relatively meager fines.

What’s it going to take to get this bank in line? Real reform that sticks, perhaps?

{End of Quick News Bite!}



  1. […] behaving badly (now referred to as BBB) should be the title of an on-going saga with the nation’s largest […]

  2. […] them from getting that ‘dream job’.  And it does not prevent them from walking into Bank of America, Chase Manhattan, et al and getting that loan they request. Racism is by definition the power to be […]

  3. […] going to be affected in the long run. However, as the financial experts believe, JPMorgan Chase, Wells Fargo and State Street Corp. are the three banks which will be impacted the most. However, Morgan Stanley and Goldman Sachs are […]

  4. […] a result of the changing nature of financial crimes. Here’s a look at some of the ways that financial crimes have shaped the modern […]