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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. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for jpm
RMB Investor
17 Apr 15 19:40:35
RT @Stock_Battle: Be with us on http://t.co/PLrw2hWPso when the market opens! $aapl $xom $msft $googl $goog $wfc $jnj $ge $wmt $jpm $pg $pf…
Clayton R.
17 Apr 15 19:08:17
Wondering where to learn stock options? Here's the place http://t.co/gV3ZaHH3uy $F $GE $T $BAC $VZ $C $AA $JPM $KO $PFE #investing
ProTradersNews
17 Apr 15 17:57:06
$RTN $WBSN $JPM: Raytheon Said to Agree to Buy Vista's Websense for $1.9 Billion: http://t.co/MnvZ6eBXf4
Chuck Jones
17 Apr 15 17:46:39
RT @jpmorgan: Seen in #Canada: A $JPM employee captured this image of a calm evening by the water in #Vancouver. http://t.co/ncCQLDAhpZ
Stock Wire
17 Apr 15 17:37:15
JPMorgan Chase & Co. Lowers Rio Tinto plc Price Target to GBX 3300 (RIO) $JPM http://t.co/rFUade8CxV
Ninji Starburst
17 Apr 15 17:32:16
God Y r u planning for the future? R u 15? $JPM
TalkMarkets Recap
17 Apr 15 17:09:03
Weird Items For Sale By The Government $HIG $LNC $COF $JPM $PNC $WFC $CMA $BAC $DJCO $BRK-A $BRK-B $BCOIN http://t.co/EhoyeboNhH
Capital Market Labs
17 Apr 15 16:45:06
Largest Banks Debt Level 1: $FNMA 2: $FMCC 3: $JPM Chart: http://t.co/yaCg3gvT0F http://t.co/UwOBcQQORH
Capital Market Labs
17 Apr 15 16:45:02
Largest Banks Debt Level 1: $FNMA 2: $FMCC 3: $JPM Chart: http://t.co/yaCg3gvT0F http://t.co/ahH4Ir3oRd
Capital Market Labs
17 Apr 15 16:43:14
Largest Banks Largest Banks Assets 1: $FNMA 2: $JPM 3: $BAC Chart: 1. $12689207 2. $FNMA 3. $JPM Full Chart: http://t.co/UHYxhNcUNQ
Usman zahid
17 Apr 15 16:39:19
RT @Bidnessetc: Former JPMorgan Chase & Co Advisor Charged With $20 Million Fraud http://t.co/5HjUz9JUx5 $JPM http://t.co/G5sWCO2Ez8
Dr. Goose
17 Apr 15 16:34:12
Bank earnings are blossoming all over. $JPM https://t.co/5fkk7V7g7z
Financial Buzz
17 Apr 15 16:20:40
Watch Our Weekly Wrapup LIVE from the Floor of the NYSE! Are you a shareholder? https://t.co/UtLMUy4sbx $MYL $JPM $NOK $ALU $C $NFLX
Stock Wire
17 Apr 15 16:14:17
Earnings News: JPMorgan Chase & Co (JPM) Q1 Profit Jumps 12%, Wells Fargo ... $JPM http://t.co/aqVnCgNqa8
12Stocks.com
17 Apr 15 16:01:36
Dow #Stocks Trend $CVX $CAT $GS $JPM $GE $PFE $MSFT $DIS $CSCO $XOM $VZ $IBM $AAPL $INTC $UNH $BA $DD $JNJ $MCD @ http://t.co/TvzJfd0RGT
Stock Wire
17 Apr 15 15:58:17
JPMorgan Chase & Co. Cuts Teck Resources Price Target to $17.00 (TCK) $JPM http://t.co/hgbNiRKlkA
Breaking News Now
17 Apr 15 15:45:19
$JPM $GS: Banks Earn On Trading, Cutting: http://t.co/8wiDbiBykT
stockmarketnow
17 Apr 15 15:21:32
RT dan_freed: . TheStreet Exclusive: SouthwestAir may replace Chase as credit card issuer http://t.co/YOsPzGEgQA $JPM $LUV $V
Marko Hristov
17 Apr 15 15:10:27
Barracuda Eyes Bigger Bite Of Cybersecurity Market http://t.co/RLhPKITu00 via @IBDinvestors $CUDA $EMC $IBM $SYMC $CHKP $SNE $TGT $JPM $HD
Joe Woelfel
17 Apr 15 14:27:10
Southwest Airlines May Replace Chase for Credit Cards Program -- Exclusive $JPM http://t.co/zk9yWZBrsi
Dan Freed
17 Apr 15 14:26:34
. @TheStreet Exclusive: @SouthwestAir may replace @Chase as credit card issuer http://t.co/SCDgp5CT05 $JPM $LUV $V
TalkMarkets
17 Apr 15 14:09:03
Hunting For #Yield Among Bank Stocks $JPM $WFC $CIZN $FNLC $NWBI $NYCB http://t.co/KEHNXZ5gmT
Jeff Sandene, CFP®
17 Apr 15 13:51:28
4/17/15 S&P 500: -1.13% GREEN: $BMY $MAT RED: $SPY $XOM $CVX $T $VZ $JPM $WFC $DD $BAC $V $MA $PEP $IBM $MMM $PFE $JNJ $PG $MCD $GE $DIS $KO
My Financial Wisdom
17 Apr 15 13:41:15
Picking a new bank http://t.co/BVQ7cUORjf $BAC $USB $WFC $KEY $JPM $V $MA $DFS $AXP #Banking #BankingServices
LeBron James
17 Apr 15 13:40:21
RT USATODAYmoney Banks warned U.S. will strike hard at second offenders http://t.co/EHUY7zV0EO $JPM $BCS $C $BAC
it assessors
17 Apr 15 13:39:24
Banks warned U.S. will strike hard at second offenders http://t.co/4qxWDSjg7N $JPM $BCS $C $BAC
The Fly
17 Apr 15 13:31:58
Stocks end week lower amid earnings reports, fear about Greece, China $GOOG $NOK $ALU $AVP $PNRA $NFLX $JPM $G... http://t.co/BMNucUvy1i
Stock Trade Alerts
17 Apr 15 13:29:08
Banks warned U.S. will strike hard at second offenders $JPM $BCS $C $BAC http://t.co/xseTxrn3o4
USA TODAY Money
17 Apr 15 13:27:06
Banks warned U.S. will strike hard at second offenders http://t.co/gTRkxillJ3 $JPM $BCS $C $BAC
Jacob Austin
17 Apr 15 13:21:40
Finance and housing markets ease out lower at the end of this week for $JPM and #BerkshireHathaway. http://t.co/e3LTjtt0Rj
Kevin Ogden
17 Apr 15 13:18:51
shawn_leamon: Ex-J.P. Morgan Chase investment adviser charged with embezzlement $JPM http://t.co/mZ2JN3WDxI via WSJ
Shawn Leamon
17 Apr 15 13:16:11
Ex-J.P. Morgan Chase investment adviser charged with embezzlement $JPM http://t.co/jYJt6ePr47 via @WSJ
Stock Wire
17 Apr 15 13:02:23
Balfour Beatty plc Receives Neutral Rating from JPMorgan Chase & Co. (BBY) $JPM http://t.co/sWN8VB7AaQ
12Stocks.com
17 Apr 15 12:59:14
Dow #Stocks Trend $CVX $CAT $JPM $GS $GE $CSCO $PFE $VZ $DIS $XOM $BA $MSFT $IBM $UNH $AAPL $INTC $DD $NKE $V @ http://t.co/TvzJfd0RGT
#
17 Apr 15 12:52:17
RT @CML_VisualFeed: Largest Banks Cash from Operations 1. $C 2. $JPM 3. $BAC Full Chart: http://t.co/icGQzRvhKx #CML
Capital Market Labs
17 Apr 15 12:51:13
Largest Banks Cash from Operations 1. $C 2. $JPM 3. $BAC Full Chart: http://t.co/icGQzRvhKx #CML
Jacob Austin
17 Apr 15 12:51:04
See how rate increases affect investments and financials, from J.P. Morgan. $JPM http://t.co/Dt7VU5b8XZ
conkers
17 Apr 15 12:47:19
$YHOO -3% to $44.40 .@barronstechblog #Yahoo!: #Cantor, $JPM See Upside in New #Microsoft Terms #search $MSFT $BABA http://t.co/RmkDVfVclt
BusinessFinanceNews
17 Apr 15 12:45:26
Former JPMorgan Adviser Accused Of $20 Million Fraud - http://t.co/vYkHVAYNxz $JPM http://t.co/uyHEKBXOxp
Forex News & Tips
17 Apr 15 12:40:42
RT @equitiescom: Stocks Fall as Earnings Season Picks Up Steam $aapl $jpm $NFLX $lnkd $c $wuba $AVP $PRTY $VIRT $ETSY http://t.co/JTh0egaxi7
webinara
17 Apr 15 12:39:15
RT: http://t.co/P7sx30nNd5 #webinar The smart approach to weekly options http://t.co/HjAiMmm9CV $JPM $BA $BAC
Carolyn B Miciano
17 Apr 15 12:37:50
The smart approach to weekly options http://t.co/QQ4hBXlqBf $JPM $BA $BAC
James P Worthy
17 Apr 15 12:35:39
$JPM JPMorgan Chase: A Buy After Q1 2015 Results? http://t.co/3eR6YVmfQ5
equities.com
17 Apr 15 12:34:31
Stocks Fall as Earnings Season Picks Up Steam $aapl $jpm $NFLX $lnkd $c $wuba $AVP $PRTY $VIRT $ETSY http://t.co/JTh0egaxi7
$Stocknewsalerts
17 Apr 15 12:31:21
$JPM New SEC Document(s) for JPMorgan Chase & Co. From our Stock News Alerts App
NASDAQ
17 Apr 15 12:28:06
$JPM - Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp) http://t.co/1IgKT2jamM
recep yakar
17 Apr 15 12:19:56
RT @RANsquawk: Focus remains on #Greece, while this week saw positive earnings from $GS & $JPM...watch our weekly wrap video here: https://…
Forex Update
17 Apr 15 12:11:35
RT @RANsquawk: Focus remains on #Greece, while this week saw positive earnings from $GS & $JPM...watch our weekly wrap video here: https://…
TalkMarkets
17 Apr 15 12:09:03
#KeyCorp (KEY) Posts In-Line Q1 #Earnings, Higher Revenues $KEY $JPM $PNC $WFC http://t.co/f9vN30LDVJ
Stock Trade Alerts
17 Apr 15 12:06:38
RT @RANsquawk: Focus remains on #Greece, while this week saw positive earnings from $GS & $JPM...watch our weekly wrap video here: https://…
				
				
  +Follow July 30, 2013 1:11PM
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