A PYMNTS Company

U.S.: Barclays electricity price-manipulation charge shows strength of FERC

By  |  November 2, 2012

In the midst of recent suits charging Barclays with LIBOR manipulation, the U.S. is now threatening to fine the bank for about $470 million, alleging Barclays manipulate electricity markets in California. The fine would exceed the money paid by Barclays in the LIBOR scandal. According to the penalty, which would be issued by the Federal Energy Regulatory Commission (FERC), the bank has 30 days to argue against the claims of price-fixing in the electricity sector in a “loss-leader” scheme, where electricity prices were fixed to show a loss so as to make profits in related position in the swaps market. If a suit is filed, the case could set a precedent, determining whether the practice is legal or not. The FERC earned the power to fight price-manipulation in 2005.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Full Content: Reuters

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.