Tuesday, July 3, 2012

Another JP Morgan Chase Scandal?



When it rains, it pours. JPMorgan Chase & Co. (JPM) is being investigated by the Federal Energy Regulatory Commission over potential power-market manipulation, according to documents provided by the Washington-based agency.  According to a Bloomberg report JPMorgan has allegedly withheld e-mails that FERC had sought in the investigation, prompting the agency to ask the U.S. District Court for the District of Columbia to order the bank to submit them or provide a reason for withholding, according to filings from FERC.

FERC’s investigation followed reports last year of bidding practices that the California and Midwest system operators deemed to be abusive, according to the documents.
“Three of the bidding techniques had together resulted in at least $73 million in improper payments,” the agency said in documents filed yesterday, citing estimates by the two system operators.

New York-based JPMorgan owns or has the right to output from several electricity generating facilities, and confirmed it was providing information, according to the company’s quarterly filing in May with the Securities and Exchange Commission….

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