BUSINESS

JPMorgan's Power Manipulation Allegations Settled For $410 Million

Jul 30, 2013 | Updated Sep 29, 2013
AP

July 30 (Reuters) - JPMorgan Chase & Co agreed to pay a civil penalty of $285 million and disgorge $125 million to settle allegations of power market manipulation in California and the Midwest, the latest settlement in a series of high-profile investigations by U.S. federal energy regulators against banks.

The deal closes the book on a probe that dates back more than two years, when California's power grid operator noticed the Wall Street bank was using an "abusive" trading strategy that effectively forced the grid to pay for plants to sit idle, ultimately adding to customers' costs.

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