JPMorgan Subsidiary Pays $410 Million to Settle Price Manipulation Claims
The Federal Energy Regulatory Commission approved today a $410 million settlement from JPMorgan Chase's Ventures Energy subsidiary related to allegations of market manipulation in electricity markets.
The settlement consists of $285 million in penalties and $125 million in "unjust profits," pulled primarily from California electricity users between September 2010 and November 2012. The penalties will go to the U.S. Treasury, while $124 million in profits will head back to California ratepayers, with the final $1 million going to manipulated Midwest electricity users.
In a J.P. Morgan statement, the company notes:
J.P. Morgan Ventures Energy agreed to pay, without admitting or denying any violations, disgorgement, penalties, and interest totaling $410 million. J.P. Morgan Ventures Energy is pleased to have reached an agreement with FERC to put this matter behind it.
Although the case excludes culpability, the company did agree to waive claims for additional payments using the strategies under investigation, and also agreed to conduct a third-party assessment of its power business policies and practices.
The article JPMorgan Subsidiary Pays $410 Million to Settle Price Manipulation Claims originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool owns shares of JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.