JPMorgan Chase & Co said on Tuesday that it has agreed to settle allegations of power market manipulation. The settlement was priced at USD410 million after being the latest investigated firm following series of high-profile inquiries led by the US Federal Energy Regulators.
The settlement came days after JPMorgan announced it was quitting its physical commodities unit. The US Federal Energy Regulatory Commission (FERC) said that it would allow CEO Jamie Dimon to close out and settle the said allegations.
JPMorgan Ventures Energy Corp is one of the largest US electricity traders. In 2008, it acquired Bear Stearns. The company has agreed civil penalty valued at USD285 million. However, the other USD125 million penalty was referred to by the company as "manipulative bidding strategies".
The penalty raised against the bank was the second biggest in the history of the FERC. According to Brian Marchionv, a spokesperson at JPMorgan, said that the settlement of the allegations would not have any material impact on earnings as the bank already set aside previous reserves.
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