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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. 

Results for jpm
Informer
19 Apr 14 10:02:33
$JPM: Banks Cling to Bundles Holding Risk http://t.co/zFoiYlzoRM
Damien S. Faucher
19 Apr 14 09:37:04
$JPM Banks Cling to Bundles Holding Risk http://t.co/90LOV3IRSa
GavinGreenberg
19 Apr 14 09:33:33
$JPM: Banks Cling to Bundles Holding Risk http://t.co/2fUOywy1W1
StockNews24
19 Apr 14 09:21:06
$JPM - Banks Cling to Bundles Holding Risk -> http://t.co/RHGGHcZAmM #stock #stocks #stockaction
Drew Killah
19 Apr 14 09:16:42
RT @bullriders1: $GOGO+18% since Tuesday's epic market reversal from $15.31 to $17.97, poised for growth on $JPM overweight upgrade... http…
erica
19 Apr 14 09:14:41
Bank Earnings Reports: Citigroup Versus JPMorgan Chase $C $JPM http://t.co/gj0HdYkWmn
--------
19 Apr 14 09:10:15
RT @bullriders1: $GOGO+18% since Tuesday's epic market reversal from $15.31 to $17.97, poised for growth on $JPM overweight upgrade... http…
Cecily Humphrey
19 Apr 14 08:58:40
$JPM Banks Cling to Bundles Hol http://t.co/g062zafn2h
DASTrader.com
19 Apr 14 08:35:29
RT @1BestTrader: $JPM Look for market to get a lift into close. Sell target $55.90 next week. pre/post market data included. http://t.co/f…
Engel
19 Apr 14 08:20:57
#ginniemae To Big Banks: Show Us Your Mortgages. But Can They? $BAC $JPM $WFC http://t.co/d6gwsi2Mc1 via @benzinga
Scott Spencer
19 Apr 14 07:39:31
$GOGO+18% since Tuesday's epic market reversal from $15.31 to $17.97, poised for growth on $JPM overweight upgrade... http://t.co/eScvNXlBfI
gordon gekko is god
19 Apr 14 07:30:41
Citigroup: Buy Before It Gets Expensive http://t.co/P6ryfjM9pP $C, $JPM
Informer
19 Apr 14 07:05:37
$JPM: Citigroup: Buy Before It Gets Expensive http://t.co/mDLti2hZee
Lars Anders
19 Apr 14 06:40:57
$FAST Awesome #Stock #Research $JPM $BRKR $FB #moneymanagement http://t.co/JCDByOJKME
GavinGreenberg
19 Apr 14 06:39:34
$JPM: Citigroup: Buy Before It Gets Expensive http://t.co/VWS8vlsEs5
Damien S. Faucher
19 Apr 14 06:38:15
$JPM Citigroup: Buy Before It Gets Expensive http://t.co/qfb9alRaw0
Chris Veros
19 Apr 14 06:31:50
RT @SeekingAlpha: Citigroup : Buy Before It Gets Expensive http://t.co/JXPr3G4NcE $JPM $C
GavinGreenberg
19 Apr 14 06:18:35
$JPM: Excellent Earnings, Tough Audience, Surprises Among the Leaders: Jim C... http://t.co/cqPSlNjVvA
KC
19 Apr 14 06:18:20
@HedgeHouseKwt @MRVAssociates Cause, while $JPM will lead them to cliff and push 'em over, you know $JPM and $GS aren't jumping.
KC
19 Apr 14 06:17:49
@HedgeHouseKwt @MRVAssociates and just because everyone is jumpin off with $JPM, i think we should stand aside, with $JPM, and watch em go
KC
19 Apr 14 06:16:57
@HedgeHouseKwt @MRVAssociates would agree with you there, Kwt, but...is the world going to let $JPM take them over the cliff? AGAIN?
Marcos Tinedo
19 Apr 14 06:16:55
@MTCGCA: Citigroup : Buy Before It Gets Expensive $C $JPM http://t.co/BzLvFKZoOm
MT Consulting Group
19 Apr 14 06:16:12
Citigroup : Buy Before It Gets Expensive $C $JPM http://t.co/JGBBK9lsCZ
Hedge House Kuwait
19 Apr 14 05:48:17
US Banking system means WORLD banking system along, basically $JPM got the world on its side. @squirrelinNH CC - @MRVAssociates
Mahmud Pirimov
19 Apr 14 05:45:14
Citigroup : Buy Before It Gets Expensive http://t.co/hgX5NYdd1k $C, $JPM
Quantpost Financial
19 Apr 14 05:39:24
$JPM News Alert: http://t.co/d73feeQtsX Updated options view: https://t.co/FJwX5d5Tjj All options views: https://t.co/Rfu6AavB1T
Seeking Alpha
19 Apr 14 05:39:22
Citigroup : Buy Before It Gets Expensive http://t.co/JXPr3G4NcE $JPM $C
Hedge House Kuwait
19 Apr 14 05:36:04
For sure the US Regulators will not favor Harvey Organ upon $JPM , US Banking system comes the very first @squirrelinNH CC- @MRVAssociates
Teodor Gareth
19 Apr 14 05:25:04
$JPM Insider Selling: Stephen Cutler Sells 43997 Shares of JPMorgan Chase & Co ... http://t.co/CVxdTy3K45
Stock Wire
19 Apr 14 05:21:17
Insider Selling: Stephen Cutler Sells 43997 Shares of JPMorgan Chase & Co ... $JPM http://t.co/ORR3aiuTaE
Stock Herald
19 Apr 14 05:00:36
$JPM: Excellent Earnings, Tough Audience, Surprises Among the Leaders: Jim C... http://t.co/vip8moJeFg
Informer
19 Apr 14 04:02:17
$JPM: Excellent Earnings, Tough Audience, Surprises Among the Leaders: Jim C... http://t.co/1aSLUN9iOQ
Foreclosure Evil
19 Apr 14 03:50:48
Ginnie Mae To Big Banks: Show Us Your Mortgages. But Can They? $BAC $JPM $WFC http://t.co/wsL4VQGetn via @benzinga
Damien S. Faucher
19 Apr 14 03:35:03
$JPM Excellent Earnings, Tough Audience, Surprises Among the Leaders: Jim Cramer's Best Blogs http://t.co/xq9fg1tsb3
GavinGreenberg
19 Apr 14 03:34:04
$JPM: Excellent Earnings, Tough Audience, Surprises Among the Leaders: Jim C... http://t.co/cqPSlNjVvA
StockNews24
19 Apr 14 03:21:02
$JPM - Excellent Earnings, Tough Audience, Surprises Among the Leaders: Jim C... -> http://t.co/anAhkQWFGh #stock #stocks #stockaction
Foreclosure Evil
19 Apr 14 03:16:38
RT @Bettermarkets: RT @AaronLucchetti: Bernard Madoff, speaking from prison, claims JP Morgan knew of fraud. http://t.co/Ug1xSrAOyG, $JPM, …
i8 wamu
19 Apr 14 01:48:56
RT @Bettermarkets: RT @AaronLucchetti: Bernard Madoff, speaking from prison, claims JP Morgan knew of fraud. http://t.co/Ug1xSrAOyG, $JPM, …
satyuga
19 Apr 14 01:22:14
RT @L_JeanJean: $JPM OBV TREND+ // GAP DOWN // BREAKDOWN // RANGE // FIBO 23.6 http://t.co/kqIGWOXXaK
Finance Wire
19 Apr 14 00:38:45
Are you Investing in $CVD $GDI $JPM $DF #NASDAQ http://t.co/uKR1JpWV6F
Ben Franklin
18 Apr 14 23:44:10
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Stock Herald
18 Apr 14 23:17:33
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/yKRk83uehI
Raj Ajrawat
18 Apr 14 22:58:38
Happy to be a $JPM alum right now with this new app, seriously!
ZaRdOz420WPN
18 Apr 14 22:52:07
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Informer
18 Apr 14 22:07:07
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/f4xTGzLy1v
GavinGreenberg
18 Apr 14 21:06:06
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/IoJzZxYibq
SYNAPTIC PAIN
18 Apr 14 20:17:28
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
Cinthia Booker
18 Apr 14 20:11:21
Bearish or Bullish on these #stocks $AMT $COST $JPM $GAIN Worth a look http://t.co/iePCjaGJ38
Stock Herald
18 Apr 14 20:02:34
$JPM: [$$] J.P. Morgans Shao Zili to Become Vice Chairman of Asian-Pacific R... http://t.co/yKRk83uehI
Ban Torture
18 Apr 14 19:49:01
RT @howtodoit1: As long as $JPM & other megabanks can create & purchase mortgage loans...nothing fundamental has changed. @nomiprins http:/…
				
				
  +Follow July 30, 2013 1:11PM
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