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Wed Jul 4, 2012, 03:18 PM

Shades of Enron: FERC investigations JPMorgan, Barclays and Deutsche Bank for energy manipulation

of prices.


Apparently, they've learned enough so they don't replicate Enron's manipulation, but instead have been manipulating the pricing in a new and different way.


FERC probes JPMorgan over electricity charges
Katarzyna Klimasinska
Published 04:54 p.m., Tuesday, July 3, 2012

http://www.sfgate.com/business/article/FERC-probes-JPMorgan-over-electricity-charges-3682758.php

FERC has issued 15 notices of alleged violations since January 2011 for companies including Barclays PLC, BP PLC, Deutsche Bank AG and Constellation, according to information posted on the agency website. Seven of the cases have been settled, according to the agency.
--

The regulator is examining efforts by J.P. Morgan Ventures Energy Corp., which is based in Houston, to extract excessive payments or above-market prices from California Independent System Operator Inc. and Midwest Independent Transmission System Operator Inc., Thomas Olson, a lawyer in the FERC investigating division, said in a court document. The probe focuses on winning inflated "make-whole" payments, he said.
"Any such improper payments to generators are ultimately borne by the households, businesses and government entities that are the end consumers of electricity," Olson said.
The price-manipulation allegations against JPMorgan's energy-trading unit appear to differ from charges against Enron Corp.'s power traders during the California energy crisis of 2000 and 2001, John Olson, managing partner of Pool Capital Partners LLC in Houston and former energy analyst at Merrill Lynch & Co., said. Enron was accused of driving up prices by persuading operators to shut down, he said.


More details here:

FERC takes aim at Barclays over power market manipulation

http://uk.reuters.com/article/2012/04/11/ferc-barclays-manipulation-idUKL2E8FB52820120411?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews

Wed Apr 11, 2012 8:31pm BST

The notice also suggested a heightened focus on so-called
"loss-leader" trading in which a firm may intentionally seek to
sell a physical commodity at a loss in order to reap a much
larger profit on related derivative positions.
The Barclays traders traded day-ahead fixed-price physical
electricity at the Mid-Columbia, Palo Verde, South Path 15 and
North Path 15 to benefit Barclays' IntercontinentalExchange
(ICE) fixed-for-floating financial swap positions in
those markets, FERC said.
After the Constellation settlement, the FERC commissioners
told Reuters the agency was adding staff with more analytical
skills and energy market experience to allow the enforcement
division to delve deeper into trading data and make it tougher
for trading firms to manipulate natural gas and power markets.
In the Barclays case, the FERC staff alleged the bank
assembled substantial physical positions in the opposite
direction of Barclays' fixed-for-floating financial swap
positions and that Barclays flattened those physical positions
in the next-day fixed-price physical markets to move the ICE
daily index settlement up if buying and down if selling.


At what point do we take another direction. The title of this editorial nails it imho:

Let's end this rotten culture that only rewards rogues
The Barclays rate-rigging scandal has once again exposed a world where men and women with little skill and no moral compass can become very rich very fast

http://www.guardian.co.uk/commentisfree/2012/jun/30/will-hutton-barclays-banking-reform




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Reply Shades of Enron: FERC investigations JPMorgan, Barclays and Deutsche Bank for energy manipulation (Original post)
suffragette Jul 2012 OP
banned from Kos Jul 2012 #1
suffragette Jul 2012 #3
JDPriestly Jul 2012 #2
suffragette Jul 2012 #4

Response to suffragette (Original post)

Wed Jul 4, 2012, 03:22 PM

1. Enron was blatant about their manipulation

 

They actually bribed Peaker plants to shut down to drive prices up.

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Response to banned from Kos (Reply #1)

Thu Jul 5, 2012, 12:20 AM

3. Looks like what these corporations have learned from that is to be sneakier

rather than say, more ethical.

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Response to suffragette (Original post)

Wed Jul 4, 2012, 03:34 PM

2. Romney claims corporations are people.

So, charge the corporations like the people they are and sentence them that way too. That is, sentence their management and boards of directors.

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Response to JDPriestly (Reply #2)

Thu Jul 5, 2012, 12:51 AM

4. I'm glad that FERC is going after them legally and financially

Adding some prosecutions to that would be even better. It's time the "talent" paid for its unethical, manipulative and criminal behavior instead of receiving bonuses paid in whole or part by all the rest of us.

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