FERC: JPMorgan Chase to pay $410 million
The settlement, announced by the Federal Energy Regulatory Commission (FERC), will allow chief executive officer Jamie Dimon to close one of several run-ins with regulators over the past year.
JPMorgan Ventures Energy, a commodity trading unit and one of the biggest U.S. electricity traders, agreed to pay a civil penalty of $285 million and $125 million for "manipulative bidding strategies" from September 2010 through November 2012. This is the second largest penalty in FERC history.
JPMorgan spokesman Brian Marchiony said the settlement would "not have a material impact on our earnings" because the bank had previously set aside reserves.
FERC said JPMorgan admitted the facts in the agreement, but "did not admit or deny the violations."
Mr. Dimon started to resolve multiple government investigations and correct problems regulators have found at the bank. The FERC deal didn't accused specific traders or JPMorgan's commodities chief Blythe Masters for any wrongdoing. He spent billions of dollars over the past five years to build JPMorgan's oil, power, gas and metals business.
JPMorgan said it will fight the FERC charges but after a court battle over the disclosure over documents, the bank entered settlement discussions as FERC laid out Mr. Masters knowledge of the traders abusive bidding strategies.
FERC Commissioner Tony Clark said the settlement is "historic," but said he was frustrated over the bank's evasiveness during the investigation. ■