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JP Morgan Fined $410 Million in Energy Price Fixing Scandal

  +Follow July 30, 2013 1:11PM
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JP Morgan Chase & Co. (JPM) ripped off utility providers, and now they’re being forced to pay it back. Following a probe by the U.S. Federal Energy Regulatory Commission that found the company manipulated energy prices in California and the Midwest, the financial giant has agreed to pay over $410 million in fines.

The fine is a small inconvenience for the largest bank in the world, who will pay $285 million back to the US government, $124 million to electric grid operators in California, and $1 million to a Midwest operator. JP Morgan had been accused of artificially driving up prices by engaging in various price fixing schemes to artificially inflate the prices utility customers would pay for electricity.

Despite being one of the only financial powerhouses to never lose money during the 2008 financial crisis, the company has been dogged by allegations of highly unethical business practices that come at the expense of investors. According to the New York Times, eight federal agencies have been investigating the bank in 2013 alone, including the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, and the Securities and Exchange Commission.

JP Morgan has been simultaneously lauded and lionized for escaping the investigations with relatively paltry fines and a string of profitable quarters, but a trading loss of $6.2 billion in April 2012, courtesy of the bank’s London branch, showed the first signs that JP Morgan had serious underlying issues.

The loss was singled out by CEO Jamie Dimon as being a result of trades that were “flawed, complex, poorly reviewed, poorly executed, and poorly monitored." The bank has become so large and autonomous that overly risky, complex, and possibly illegal trading methods often fly past upper management, to the point where Dimon wasn’t even aware of what had happened until the company realized such magnanimous losses.

The massive trading losses spurred the passage of the Dodd-Frank Wall Street Reform Protection Act, which has sought to curb impropriety by banks that end up damaging not just investors, but as is the case with the most recent allegations, small businesses and utility customers.

Concerning the current scandal involving unethical trading practices, JPMorgan spokesman Brian Marchiony simply said, “We’re pleased to have this matter behind us.” While that scandal is already written off, the matter of paying off the rest of their regulatory fines is far from over. Dimon has said JP Morgan is likely to shell out over half a billion in settlements in 2013 alone.

This is a drop in the bucket for a $210 billion market cap company, one that still posts record profits. But the bank, infamous for stonewalling regulators, appears to have lost a major battle in the war.   

JP Morgan's stock  is down .40 percent to hit $55.46 a share. They're up 24.30 percent on the year. 

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Results for jpm
Barbarian Capital
28 Mar 15 11:22:04
Barron's cover: criminality is now "regulatory tumult" what a disgrace. $jpm http://t.co/iRqhZ4lZpZ
Penny Stock Secret
28 Mar 15 11:19:05
This Service Made 20,000% Gains In the Last Month! Subscribe Here http://t.co/NovWYe2RAx .. $LVS $JPM $MHYS
David
28 Mar 15 11:13:10
@jimcramer Sir do you think (now that "londonwhale" and major settlements are done) that $JPM has its mojo back as the #BESTofBREED ??
Capital Market Labs
28 Mar 15 11:03:29
Largest Banks Earnings 1. $WFC 2. $JPM 3. $FNMA Full Chart: http://t.co/Nq3w0eGEjv https://t.co/x98qiYd3dx
Carolyn B Miciano
28 Mar 15 11:02:08
Why the Bear Put is an extension of the Long Put http://t.co/7O91ImAVwF $JPM $BA $BAC
Christopher Whalen
28 Mar 15 10:46:15
Chase Eliminating 100s of NY Mortgage Jobs $JPM
HeyTrader
28 Mar 15 10:41:09
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Steve Jackson Show
28 Mar 15 10:14:45
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Michael Kurtz
28 Mar 15 10:11:24
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Max Ganik
28 Mar 15 09:54:04
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Stockaholics
28 Mar 15 09:51:05
Our Stock Tips Have Gained Over 230% Within 2 Days! Huge News: http://t.co/FW1zCkmOE6 $LVS $JPM $MHYS
Carri Degenhardt
28 Mar 15 09:40:20
@MorganStanley is aggressively recruiting @jpmorgan private bankers http://t.co/yNqjwzRna8 #WealthManagement $MS $JPM
MCAdvisorHUB
28 Mar 15 09:40:20
@MorganStanley is aggressively recruiting @jpmorgan private bankers http://t.co/PPuFcYwUkf #WealthManagement $MS $JPM
robert accardi
28 Mar 15 09:39:58
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Robert Graham
28 Mar 15 09:30:43
@MorganStanley is aggressively recruiting @jpmorgan private bankers http://t.co/mkQ1RVGGIj #WealthManagement $MS $JPM
Stock Rocket
28 Mar 15 09:23:21
Our Penny Stock Newsletter Picks Gained Over 1485%! Huge Update: http://t.co/cDuleLngkJ $LVS $JPM $MHYS
Andrew Parish
28 Mar 15 09:20:19
@MorganStanley is aggressively recruiting @jpmorgan private bankers http://t.co/8HvKuiJruf #WealthManagement $MS $JPM
AdvisorHub
28 Mar 15 09:10:27
@MorganStanley is aggressively recruiting @jpmorgan private bankers http://t.co/ukynynBhSs #WealthManagement $MS $JPM
Katherine Stueland
28 Mar 15 09:07:32
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Breaking News
28 Mar 15 09:07:01
$SBUX $TWX $JPM $FB $TWTR: Cyberbullying's new target: Big companies: http://t.co/4Q5cxPEVD8
Alpha Maven Alerts
28 Mar 15 09:02:03
$JPM active, relative volume: 3.37, 1H, 12:00 PM, #nyse $DJI $SPY
AdvisorHUB Rumors
28 Mar 15 09:01:15
@MorganStanley is aggressively recruiting @jpmorgan private bankers http://t.co/o2nLeeSeyR #WealthManagement $MS $JPM
Tish Ferguson
28 Mar 15 08:59:44
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
StockenheimerSchmidt
28 Mar 15 08:48:18
$RCGP tripled in value within 2 days as of yesterdays high! high! Big News: http://t.co/RWkbXZLnwm $LVS $JPM $MHYS
Breaking News Now
28 Mar 15 08:45:02
$LOW $AZO $JPM $WMT $WBA: Agree Realty Execs Bet On Further Upside (ADC): http://t.co/tZKFOYf1Yk
Hubert H Rivera
28 Mar 15 08:44:10
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Marvin Clark
28 Mar 15 08:39:36
The New Normal - Financial Review $SOXX $INTC $ALTR $OIL $GREK $JPM http://t.co/9FQC4BZTY8
TalkMarkets
28 Mar 15 08:39:36
The New Normal - Financial Review $SOXX $INTC $ALTR $OIL $GREK $JPM http://t.co/dUxBI6N0bJ
Retweet to thank you
28 Mar 15 08:30:33
RT @jpmorgan: Seen in #Switzerland: A $JPM employee snapped this shot of a #Zurich sunrise towards the Alps. http://t.co/umxJBXA6Od
Michael Piazza
28 Mar 15 08:28:08
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
I retweet #socphoto
28 Mar 15 08:27:01
RT @jpmorgan: Seen in #Switzerland: A $JPM employee snapped this shot of a #Zurich sunrise towards the Alps. http://t.co/umxJBXA6Od
Charles
28 Mar 15 08:24:45
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
tanios mansour
28 Mar 15 08:24:21
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Thomas Paul
28 Mar 15 08:11:02
RT @bret_jensen: $JPM Could get Barron's Bounce Monday as article sees 30% capital appreciation ahead http://t.co/y8wqvTnrJd
Jason Santoriello
28 Mar 15 08:08:16
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Anthony Panek
28 Mar 15 08:07:25
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Capital Market Labs
28 Mar 15 08:06:36
Largest Banks Earnings 1. $WFC 2. $JPM 3. $FNMA Full Chart: http://t.co/OdMyV1PGik https://t.co/VPsYRMKq5h
A. B. Christensen
28 Mar 15 08:06:30
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Bret Jensen
28 Mar 15 08:03:59
$JPM Could get Barron's Bounce Monday as article sees 30% capital appreciation ahead http://t.co/y8wqvTnrJd
Heritage Protection
28 Mar 15 08:03:47
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
MicroCap_Trader
28 Mar 15 08:01:08
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
G S
28 Mar 15 07:59:03
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Befree
28 Mar 15 07:58:50
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Maria Bartiromo
28 Mar 15 07:58:35
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
Stock Wire
28 Mar 15 07:35:49
JPMorgan Chase & Co. Reiterates "Overweight" Rating for Vodafone Group plc ... $JPM http://t.co/N4SsQMeQsW
Lio Trep
28 Mar 15 07:32:25
JPMorgan could rise 30% in a year, not including the 2.9% yield. Q1 EPS est. is $1.40, up from $1.28 a year ago http://t.co/yi0ApcyOcV $JPM
My Financial Wisdom
28 Mar 15 07:24:06
Cap Rate http://t.co/tEJqHYAf0S $BAC $USB $WFC $KEY $JPM $V $MA $DFS $AXP
Stock Wire
28 Mar 15 07:04:11
Ultragenyx Pharmaceutical Earns “Overweight” Rating from JPMorgan Chase ... $JPM http://t.co/bUFtNqsV1P
Ken
28 Mar 15 06:49:47
magazine cover indicator? $XLF $JPM http://t.co/btWBph83yo
PROUSTPOSITIVE!
28 Mar 15 06:43:45
RT @barronsonline: $JPM: The biggest U.S. bank is stronger than ever under Jamie Dimon’s skilled leadership. http://t.co/Ce1gfkdV5J http:/…
				
				
  +Follow July 30, 2013 1:11PM
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