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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
Breaking News Now
29 Jul 15 17:57:02
$JPM: JPMorgan Defeats Investor Suit Over Money-Laundering Lapses: http://t.co/VdiCblr13F
Angela Rogers
29 Jul 15 17:56:45
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
#TheMouve | l |
29 Jul 15 17:50:37
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
Ophir Gottlieb
29 Jul 15 17:46:50
Revenue Growth: 25 Largest BANKS ➡ http://t.co/IxrJv823og 1 $SBNY 2 $BAP 3 $FRC - 12 $C 14 $WFC 21 $JPM 23 $BAC http://t.co/UqI80QuniU
jim50
29 Jul 15 17:41:29
JPM J.P. Morgan Chase & Co. Company Info http://t.co/HxW0pQM1zM $JPM $TBT $PG $DD #JPM #stocks #pennystocks
Stock Market Picks
29 Jul 15 17:34:21
$GE $GS $HD $IBM $INTC $JNJ $JPM Long and short positions from the Dow Jones, up to 1800% since 2008. http://t.co/sjQjlxfmsp $DJIA $DIA
Candice Peters
29 Jul 15 17:31:40
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
Quantpost Financial
29 Jul 15 17:28:48
$BAC $JPM $WFC $SAN News: "Santander's Stock Price Has Disappointed, But Profits…" http://t.co/znp5NkJy8Z Analyze: https://t.co/37K8BAOkO6
Quantpost $JPM
29 Jul 15 17:28:48
$JPM News: "Santander's Stock Price Has Disappointed, But Profits Haven't $BAC …" http://t.co/8qwagl669i Analyze: https://t.co/raaerKvCZ6
Financial Stocks
29 Jul 15 17:28:47
Santander's Stock Price Has Disappointed, But Profits Haven't http://t.co/NNRnObz5gg $BAC $JPM $WFC $SAN
Income Investing SA
29 Jul 15 17:28:46
Santander's Stock Price Has Disappointed, But Profits Haven't http://t.co/FKivmOO9ch $BAC $JPM $WFC $SAN
Dividend Investing
29 Jul 15 17:28:46
Santander's Stock Price Has Disappointed, But Profits Haven't http://t.co/fNjphhdO0r $BAC $JPM $WFC $SAN
Seeking Alpha
29 Jul 15 17:28:45
Santander's Stock Price Has Disappointed, But Profits Haven't http://t.co/vChplLjEPn $BAC $JPM $WFC $SAN
LISNR
29 Jul 15 17:08:21
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
Naji H Kelley
29 Jul 15 17:08:04
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
Thotty By Nature
29 Jul 15 17:07:27
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
Rodney Williams
29 Jul 15 17:07:10
RT @Chase: $JPM's Pat David talks with @rodneybwilliams on the importance of diversity in STEM. #WhatItTakes http://t.co/bQSpLxApcx
• em •
29 Jul 15 16:50:01
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Lindsey Weldon
29 Jul 15 16:49:52
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Alesha Pryce
29 Jul 15 16:49:47
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Jack Redman
29 Jul 15 16:49:45
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Jacob Richo
29 Jul 15 16:49:34
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
pastry chef dorset
29 Jul 15 16:49:30
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Luke O'Neill
29 Jul 15 16:49:28
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Chuck Rinehart
29 Jul 15 16:49:20
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Solcito
29 Jul 15 16:49:18
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Ahmad Afiq
29 Jul 15 16:49:07
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
MojoRecordBar
29 Jul 15 16:49:05
RT @DayTradersGroup: $SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT h…
Day Traders Group
29 Jul 15 16:43:12
$SPY Bears likely to push this to all time highs...again $SPX $FB $AMZN $QQQ $IWM $TSLA $TWTR $MU $BAC $JPM $GS $TLT http://t.co/49kxSjnlZS
StockNewsWires
29 Jul 15 16:41:10
$JPM $MS $GS: Banks Pitch Swaps as Alternative to Buying Stock: http://t.co/ODbychGBX5
TheCreditBubble
29 Jul 15 16:19:48
RT @mlplongshort: Wow, my $UBER driver previously worked at $C and $JPM...he now drives 6pm-10am and day trades $TSLA $BIIB $AMZN (among ot…
chute75
29 Jul 15 16:18:29
RT @mlplongshort: Wow, my $UBER driver previously worked at $C and $JPM...he now drives 6pm-10am and day trades $TSLA $BIIB $AMZN (among ot…
Master LP
29 Jul 15 16:18:05
Wow, my $UBER driver previously worked at $C and $JPM...he now drives 6pm-10am and day trades $TSLA $BIIB $AMZN (among others) as his 9-5.
John T. Berry
29 Jul 15 16:10:38
RT @jpmorgan: New $JPM piece examines the forces of inefficiency confronting #treasury: http://t.co/WKQtTuJQ0A http://t.co/ifSfbYuIc6
Michael Cook
29 Jul 15 16:04:42
Our Stock Alerts Gained Over 550% This Month Already! See Our Huge New Pick Coming This Week: http://t.co/abs4Q0eCx9 $LVS $JPM $MHYS
Michael James
29 Jul 15 16:03:03
After A MASSIVE 525% Gain On $GEQU, We Have A New Pick Ready! Special Update: http://t.co/wFGuoX67mX $LVS $JPM $MHYS
Paul Henry
29 Jul 15 16:02:03
Our Penny Stock Picks Have Gained 3,600% In 10 Months! Get Early Access To Our Next Pick: http://t.co/xXdYdpiHOc $LVS $JPM $MHYS
12Stocks.com
29 Jul 15 16:01:12
Dow #Stocks Trend $V $NKE $DIS $HD $PFE $MCD $TRV $JPM $UNH $XOM $PG $GS $MRK $BA $JNJ $MSFT $INTC $CSCO $KO $VZ @ http://t.co/TvzJfd0RGT
nasdaqfan
29 Jul 15 15:51:32
ZIOP ZIOPHARM Oncology, Inc. EOD Data http://t.co/MV0iXiDdyB $ZIOP $JPM $AMBA $TBT #ZIOP #stocks #pennystocks
Stock_Tracker
29 Jul 15 15:50:15
WMT Wal-Mart Stores, Inc. Company Info http://t.co/EzW161Sk13 $WMT $COST $JPM $JDST #WMT #share #nasdaq
PolgarStocks
29 Jul 15 15:49:12
XIV VelocityShares Daily Inverse VIX Short Term ETN Short Sales http://t.co/tiNfAgMHS2 $XIV $JPM $UCO $MNKD #XIV #stockmarket…
DennyT
29 Jul 15 15:49:06
X USX-US Steel Group, Inc. Exchange http://t.co/jZGff6p0vZ $X $XIV $JPM $FB #X #investing #stock
Investors Hangout
29 Jul 15 15:48:16
VOO Vanguard S&P 500 ETF Day Low http://t.co/6LAshBUg2T $VOO $JPM $NXPI $NKE #VOO #finance #stocks
PolgarStocks
29 Jul 15 15:48:05
VHT Vanguard Health Care VIPERs Ask Size http://t.co/Q1d7MBGDa6 $VHT $COP $VXX $JPM #VHT #nasdaq #pennystocks
Emylers
29 Jul 15 15:47:34
USO United States Oil Fund, LP Investor Opinions http://t.co/i25E3KWrk7 $USO $GLD $JPM $SGYP #USO #stocks #stocks
IH NASDAQ OMX
29 Jul 15 15:47:07
UA Under Armour, Inc. % Change http://t.co/pFj0UiuNLz $UA $AMD $AVGO $JPM #UA #stocks #tradeideas
DennyT
29 Jul 15 15:46:08
TZA Direxion Daily Small Cap Bear 3x Shares Market Cap http://t.co/UzE8z2GztW $TZA $WFC $AGN $JPM #TZA #tradeideas #pennystocks
PolgarStocks
29 Jul 15 15:45:40
PNRA Panera Bread Co. Bid http://t.co/Jc6V6nVal3 $PNRA $JPM $SLW $MRK #PNRA #pennystocks #share
PolgarStocks
29 Jul 15 15:45:40
PNRA Panera Bread Co. Bid http://t.co/VFq4qH6COC $PNRA $JPM $SLW $MRK #PNRA #pennystocks #share
PolgarStocks
29 Jul 15 15:45:39
PNRA Panera Bread Co. Bid http://t.co/axyrtRVrqP $PNRA $JPM $SLW $MRK #PNRA #pennystocks #share
				
				
  +Follow July 30, 2013 1:11PM
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