JP Morgan’s energy unit pays $410m to settle US energy case

The Federal Energy Regulatory Commission (FERC) has imposed a fine on JP Morgan’s energy unit after it was alleged that JPMorgan’s trading practices drove up prices for electricity, mainly in California and the Midwest. JP Morgan has agreed to pay the $410m (£268m) to settle the charges but did not admit any wrongdoing as part of the settlement. Under the deal, the bank must also make annual reports to the commission for three years detailing its power business in the United States. The fine is the second largest penalty in FERC history and comes as Barclays $453m fine, for allegedly manipulating electricity prices, was upheld by US regulators earlier this month. The energy rigging case is the latest embarrassment to hit JP Morgan. Last year, the bank suffered a $6.2bn (£4bn) loss after trades made by the so-called London Whale turned out to be bad. JPMorgan said it was “pleased to have reached an agreement with FERC to put this matter behind it.'” The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Setfords Solicitors are a national full service law firm, with debt recovery solicitors in Guildford and across the country.