The Financial Times has a little more on the allegations levelled against JP Morgan:

  • The Federal Energy Regulatory Commission has alleged JPMorgan engaged in manipulative bidding strategies in power markets in California and the Midwest
  • Outlined “eight manipulative bidding strategies” used by them in those regions in 2010 and 2011
    JPMorgan has been in settlement talks with the regulator, which subpoenaed the bank last year
  • The bank’s bidding practices may have inflated electricity costs by at least $73m

No comment so far from JP Morgan

More at Fast FT

The Wall Street Journal also adds:

the commission and J.P. Morgan are expected to settle the case for roughly $410 million in a deal that would also include the bank relinquishing roughly $200 million in unpaid claims from electricity buyers in California. That settlement could come as early as Tuesday.

Regulator Outlines J.P. Morgan Electricity- Market Violations (The Wall Street Journal is often gated, so if you’re unable to access the article try a search of Google news using the headline)