JP Morgan Accused Of Manipulating US Energy Markets Using 8 Different Trading Strategies!

• JP Morgan Accused Of Manipulating US Energy Markets Using 8 Different Trading Strategies! 
  by Linette Lopez, http://www.businessinsider.com.au/
  The Federal Energy Regulating Commission (FERC) has accused JP Morgan of using manipulative bidding strategies in U.S. energy markets, Bloomberg reports.
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  The bank’s physical energy business is housed within JP Morgan Ventures Energy Corporation. Back in May, the New York Times reported that regulators warned the bank that it was being investigated for allegedly manipulating markets in Michigan and California.
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  According to the report, it was specifically looking into the work of commodities legend Blythe Masters.
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  From NYT:
  The regulatory document cites her supposed “knowledge and approval of schemes” carried out by a group of energy traders in Houston. The agency’s investigators claimed that Ms. Masters had “falsely” denied under oath her awareness of the problems and said that JPMorgan had made “scores of false and misleading statements and material omissions” to authorities, the document shows.
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  Since then FERC ordered that UK bank Barclays and some of its traders pay a $453 million fine for similar violations. Around the same time, JP Morgan was negotiating a $410 million settlement with FERC.
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  To add more drama to the story, in September the Fed will decide if it will continue to allow Wall Street banks to trade physical commodities at all. JP Morgan started entering the business aggressively after the financial crisis, and last week announced that it was considering making is exit as the risks may have become too great.
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  This accusation may make that decision a little easier. Check out FERC’s detailing of the violations below:
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  read more!

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