JPMorgan faces questions from US energy regulators

JPMorgan Chase & Co is being investigated by the US energy watchdog about whether it manipulated power markets in some parts of the USA in 2011. The US bank is […]

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By Vicky Ellis

JPMorgan Chase & Co is being investigated by the US energy watchdog about whether it manipulated power markets in some parts of the USA in 2011.

The US bank is said to have received two subpoenas from the Federal Energy Regulatory Commission (FERC) asking for several emails as part of the investigation.

The FERC is apparently looking at whether some of JPMorgan’s bidding practices were designed to push up power prices in the California and Midwest electricity markets by $73million, reported Reuters.

Their investigation seems to be part of a wider crackdown on Wall Street banks, some of which have already been given large fines for manipulating power markets.

JPMorgan said it has been cooperating with the investigation into its “federally approved power business”.

Brian J Marchiony, a spokesperson for JPMorgan said: “We believe we have complied in all respects with the law, as well as FERC rules and applicable tariffs, governing this market.

“We stress that this investigation is ongoing and that no conclusions have been reached or findings adjudicated. We welcome the Court’s assistance in resolving this dispute over documents.”

The FERC has not yet reached a conclusion in its investigation.