s skippy the bush kangaroo: jp morgan pooched over californians

skippy the bush kangaroo

Thursday, July 18, 2013

jp morgan pooched over californians

and now wants to just settle the whole matter for pennies to their billions. tell me again why these financial terrorists aren't in jail?
the nation’s largest bank, which has previously clashed with its regulators, is seeking to settle with the federal agency that oversees the energy markets, according to people briefed on the matter. the regulator, the federal energy regulatory commission, found that jpmorgan devised “manipulative schemes” that transformed “money-losing power plants into powerful profit centers,” a commission document said.

the potential deal, the people said, is expected to cost the bank about $500 million, a record for the commission, which has adopted a harder line with wall street over the last year. for jpmorgan, which reported a record $6.5 billion quarterly profit last week, the fine will hardly dent the bottom line..

....like barclays, jpmorgan faces accusations stemming from its rights to sell electricity from power plants. the rights come from assets the bank accumulated in the 2008 takeover of bear stearns.

but soon after the acquisition, the plants became a losing business that relied on “inefficient” and outdated technology. under “pressure to generate large profits,” investigators said in the march document, traders in houston devised a solution. adopting eight different “schemes” between september 2010 and june 2011, the traders offered the energy at prices “calculated to falsely appear attractive” to state energy authorities. the effort prompted authorities in california and michigan to pay about $83 million in “excessive” payments to jpmorgan, the investigators said.

...after california authorities began to object to the bank’s trading strategy, ms. masters “personally participated in jpmorgan’s efforts to block” the state authorities “from understanding the reasons behind jpmorgan’s bidding schemes,” the regulator, known as ferc, said. - deal book

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posted by SantaBarbarian at 11:55 AM |


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