JPMorgan settles electricity manipulation case for $410 million

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posted on Jul, 30 2013 @ 09:17 AM
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Source

I need some help wrapping my layman brain around this ATS~




The bank's energy unit, JP Morgan Venture Energy Corporation, was accused of raising electricity rates in these markets between September 2010 and November 2012 through "manipulative bidding strategies," according to the Federal Energy Regulatory Commission.


"Manipulative bidding strategies"
I don't believe it....




JPMorgan (JPM, Fortune 500) will pay $124 million to California residents who overpaid for electricity. Customers in the Midwest will receive $1 million. The rest of the fine will be paid to the U.S. Treasury.


Now this is where I'm
So~ $124 million to Cali Residents who overpaid and only $1 million to the midwest??? The rest will be paid to the U.S. Treasury??? $275Million to the U.S treasury???
Who is really profiting off of these lies??? This is like a magic trick~ In one hand and ::Oooohpah~:: in the opposite pocket.... Am I reading this right? Please advise, if I am not seeing straight~



The bank neither admitted nor denied the violations, but said it would work with outside counsel to review its policies and practices in the power business.


I can see the fat hogs laughing up a storm... Review it's policies... Slap on the wrist? Anyone?



The strategies allegedly worked like this: In California, for example, the bank would bid to deliver electricity to a utility the next day at a low price of $30 per megawatt hour. When the next day came, JPMorgan would change its offer to a much higher price of $999 per megawatt hour, assuring the power did not get bought, according to the notice.


That's amazing... That's not price gouging... That's blatent padding the power industry to rape the little's in the economy.


This is not a long article and I only took out what I felt was relevant. I know this is nothing "new" for the banksters... But isn't this part of the problem? THIS IS NOTHING NEW!~ Yet they keep playing these sleight of hand tactics and nobody get's punished, put away et cetera.... I know, corporations are it's own entity..... I don't have to speak another language to call bull s$it... But this is getting a little ridiculous~

I'm just FED UP!




posted on Jul, 30 2013 @ 09:54 AM
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reply to post by sulaw
 


i read the article and didn't see how much money that they made during the time period
wonder what that was, and wonder if that 275 million the U.S. Treasury got, was that their cut of what was left after the payout from jp morgan. you know if you made a billion or two, paying out less than half a billion is a good deal.

edit on 30-7-2013 by hounddoghowlie because: (no reason given)



posted on Jul, 30 2013 @ 10:05 AM
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GOD DAMN IT!!!

Is there ANYTHING that crime syndicate can do that would FINALLY LAND Dimon and his minions -- or ANY of the major bankers -- in JAIL???

NOTHING??????

WHY does money buy one out of trouble!!!! I am so fed up with this stupid system


If a "person" (corporation
) has so much money they can buy their way out of EVERY MALFEASANCE - then some OTHER punishment is in order!!!

If I knew that my only punishment would be giving something I have PLENTY of, what is the deterrent?

Strip them of their profits - force them off the stock market - close down all their businesses FOR GOOD.
Those people are monsters.



posted on Jul, 30 2013 @ 10:14 AM
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Originally posted by wildtimes
GOD DAMN IT!!!

Is there ANYTHING that crime syndicate can do that would FINALLY LAND Dimon and his minions -- or ANY of the major bankers -- in JAIL???

NOTHING??????

WHY does money buy one out of trouble!!!! I am so fed up with this stupid system


If a "person" (corporation
) has so much money they can buy their way out of EVERY MALFEASANCE - then some OTHER punishment is in order!!!

If I knew that my only punishment would be giving something I have PLENTY of, what is the deterrent?

Strip them of their profits - force them off the stock market - close down all their businesses FOR GOOD.
Those people are monsters.



i'am willing to bet that the money they paid out wasn't theirs, it was part of what they stole. that's part of not admitting too. i'am trying to see if there is a report on what they actully took.



posted on Jul, 30 2013 @ 01:04 PM
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If you do perchance find anything hounddog~ Please let us know


@wildtimes~ It's more than sickening, I just don't know what to say about this debacle that is more than a daily occurance anymore. Almost as if I'm "numb" to hearing of more shenanighans, all the while these (for lack of better words) asshats are still in control and there is "nothing" that any of can do.

Let alone if something was to happen, someone dethroned the dethronable would innevitably set the entire world into a downward spiral and in my opinion "chaos on Earth".

Thank you for the responses~



posted on Jul, 30 2013 @ 01:46 PM
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Those who wear a tuxedo, politicians, banksters, CEO of big company's, they are not criminals, they are the smart ones who make money.

Pay millions while making billions, good deal if you ask me.



posted on Jul, 30 2013 @ 01:50 PM
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.... and three guesses as to who will be footing the bill on this one....

I'll help you out and let you know it won't be JP....



posted on Jul, 30 2013 @ 01:52 PM
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Originally posted by earthling42
Those who wear a tuxedo, politicians, banksters, CEO of big company's, they are not criminals, they are the smart ones who make money.

Pay millions while making billions, good deal if you ask me.


That's either a sad attempt to troll, or a really messed up POV to live by.


I see many POV's with your said response but they are all fails and are part of the inevitable fall of all that's around us.



posted on Jul, 30 2013 @ 01:53 PM
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reply to post by FORMe2p00p0n
 


Yup ~ they'll just jack up intrest rates and pull it out of a broken economy and triple the money they lost.



posted on Jul, 30 2013 @ 02:05 PM
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The bank would bid to deliver electricity to a utility the next day at a low price. When the next day came, JPMorgan would change its offer to a much higher price, assuring the power did not get bought, according to people familiar with the matter. Consumers would then have to compensate the bank for the cost of making the bid, under California's "make whole provision," which requires ratepayers to cover certain costs incurred by energy sellers.

It's not clear how JPMorgan made money on this arrangement, or if it was technically legal.

money.cnn.com...


Sounds like they are gaming the design of the CA power market that Enron and others gamed years back.

JPM was assuring that the power did not get purchaed and got some money recouped in fees.

The ISOs I worked with at one time seemed to have rules about the value of power being bid into the system. Any old price dreamed up was valid in the day ahead market. If this action is actually valid there then CA really did a poor job with rules years ago, IMO.



posted on Jul, 31 2013 @ 06:49 PM
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Thanks for posting this sulaw! Such a sick, immoral company.

I follow some of the news about JPM mostly due to the fact they manipulate precious metals and I'm invested in physical, but this is beyond insane.

This company needs to be forcibly dismantled and thoroughly dissolved, then send the CEOs to a nice regular, general population prison for the rest of their lives.



posted on Jul, 31 2013 @ 07:22 PM
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reply to post by sulaw
 


I wonder if you understood what i wrote sarcastically, it was not an attempt to troll, just something that seems to be the case.
Of course, it is not all that black and white, but the economy has been damaged badly by fraudulant actions, and noone has been held accountable.



posted on Jul, 31 2013 @ 07:30 PM
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Any old price dreamed up was valid in the day ahead market.


That's a typo on my part that I missed. It should be 'Not Valid'. Major oops there.



posted on Aug, 1 2013 @ 10:21 AM
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reply to post by earthling42
 


I definately understand where you were coming from now, my apologies on the misinterpretation. Text reading is so impersonal that it's easy to read something the wrong way pending a mood any given individual is in.



posted on Aug, 5 2013 @ 08:47 PM
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A bit clearer statement of what JPMorgan was doing.



JPMorgan Ventures Energy has contracts with power generating companies to trade their electricity. FERC said the JPMorgan traders offered to sell electricity at artificially low prices in a “day-ahead” market, so that companies would put their plants on standby mode to quickly generate energy. That would allow JPMorgan to earn fees for putting the power plants on standby mode.

Later, the traders would offer to sell electricity from the plants at higher prices in the market for last-minute energy needs, according to FERC.

fuelfix.com...


So they bid reserve power before (day ahead) at one price then in real time bid a higher price for the same unit. I imagine the low bid price to get reserve and the fee that is paid for it is what is in question.





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