JP Morgan Enron Chase
JP Enron Chase Morgan has urged FERC not to force it out of the power market after FERC has slapped on the wrist multiple banks, such as Deutsche Bank, in the past year for electricity market manipulation. The order is separate from the FERC lawsuit that JP Morgan currently faces. As The Morgue would, it apologized to the US energy regulator on Thursday for misleading the agency on the electricity market. It claimed the misleading was done inadvertently. The biggest bank in the US, to be sure, has not apologized to California residents.
The bank remains standing tall above the regulator offices of the US. Either individuals are worried that a Mexico-style fatwa on opposition to the debt-dealers will foment or they merely are living a bit more comfortably with the hours they’ve picked up moonlighting for banks. Or maybe the regulators know the wrath that will befall the public if the bank’s become truly reigned in.
Begging for more and more mercy, The Morgue pleaded with the US Federal Energy Regulatory Commission to not follow through on its threat to suspend its market-based rate authority, which would force it to sell power at a lower, natural rate, and likely drive it out of the market. The regulator maintains that the bank broke the law with its submission of misleading information to the commission and California grid operator. This probe is separate of a lawsuit brought against JP Morgan for manipulation electricity prices in California and the US Midwest by submitting artificially high bids.
“But, no! It was an accident,” The Morgue maintains.
“…we respectfully submit that suspension of (J.P. Morgan Ventures Energy Corp’s) market-based rate authority is not an appropriate or proportionate response,” the bank said.
Two statements from lawyers and two from bank employees support the claim that the bank considered all statements accurate at the time it had submitted them. FERC had demanded a “show cause” on Sept. 20 to the JP Morgan unit, enabling it 21 days to show why it should not be found to have violated the Federal Power Act.
It attached four affidavits in the response, two from lawyers and two from bank employees, that verify it had considered all statements accurate at the time it had submitted them, it says.
JP Morgan has not made recent comment. But, in a 69-page response released by FERC on Thursday, the bank “regrets and apologizes for its failure to address the FERC communications in certain submissions.”
Just last month, FERC requested Deutsche Bank Energy Trading LLC to prove that it did not manipulate California Energy markets or face a $1.5 million penalty. Also, in April, FERC came to Barclays Pld alleging they bid up California power prices between November 2006 and 2008 and in March FERB nabbed a record $245 million fine from Constellation Energy over charges of power market manipulation.