Big banks manipulating energy markets

[limpyhobbler]

Barclays will fight fine imposed by energy regulator

One day after being slapped with a record $453 million civil fine for electricity market manipulation, Barclays teed up a showdown with the Federal Energy Regulatory Commission by refusing to pay the fine and vowing to fight it in federal district court.

The move by Barclays on Wednesday poses a test of FERC’s enforcement powers and came amid media reports that JPMorgan Chase might be on the verge of settling similar charges with FERC for half a billion dollars.

A federal court trial over the Barclays fine would be the first such test of powers granted to FERC under the Energy Policy Act of 2005, which expanded the agency’s ability to prohibit and punish market manipu­la­tion in the wake of the 2001 Enron scandal that caused an energy crisis in California. The legislation raised maximum penalties from $10,000 a day per violation to $1 million a day per violation.

Since passage of the legislation, the agency’s enforcement staff has grown from about a dozen to more than 200 people, including many experienced prosecutors and regulators. In the past 17 months, FERC has settled energy market ma­nipu­la­tion cases with Constellation Energy, Deutsche Bank, Rumford Paper and two other firms.
...

http://www.washingtonpost.com/business/economy/barclays-will-fight-fine-imposed-by-energy-regulator/2013/07/17/9e1b205c-ef0f-11e2-9008-61e94a7ea20d_story.html

[JeffHead]

1. What aren't they manipulating these days?

You name it they are making money off it.

[cprise]

2. K&R