Chart usGOLD   Chart usSILVER  
 
Food for thought
Inflation allows you to live in a more expensive neigbourhood without moving
Anonymous  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1241.630.63
Silver 17.170.03
Platinum 1259.254.15
Palladium 768.703.40
WORLD MARKETS
DOWJONES 16461-154
NASDAQ 4383-37
NIKKEI 15196391
ASX 537361
CAC 40 410524
DAX 894053
HUI 185-6
XAU 76-3
CURRENCIES (€)
AUS $ 1.4411
CAN $ 1.4212
US $ 1.2645
GBP (£) 0.7880
Sw Fr 1.2061
YEN 135.5520
CURRENCIES ($)
AUS $ 1.1398
CAN $ 1.1239
Euro 0.7909
GBP (£) 0.6233
Sw Fr 0.9538
YEN 107.1910
RATIOS & INDEXES
Gold / Silver72.31
Gold / Oil15.22
Dowjones / Gold13.26
COMMODITIES
Copper 3.03-0.01
WTI Oil 81.58-0.38
Nat. Gas 3.69-0.02
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
JPM 'Benched' from Trading in the Energy Markets for Six Months
Published : November 15th, 2012
406 words - Reading time : 1 - 1 minutes
( 4 votes, 4.8/5 ) Print article
 
    Comments    
Tweet

 

 

 

 

The US Federal Regulatory Commission (FERC) has suspended JP Morgan's electrical trading privileges for six months in response to JPM's continued provision of false and misleading information.

In the story from Bloomberg:

The action, part of a more aggressive effort by the commission to monitor U.S. power markets, prohibits J.P. Morgan Ventures Energy Corp. from selling electricity at market-based rates for six months starting April 1, 2013.

In its order released late yesterday, FERC said the JPMorgan unit will essentially be allowed to participate as a bystander in wholesale power markets, granting it the ability to offer electricity into the market without a price attached. This will ensure that utilities have the ability to obtain enough power to serve the demand from customers. JPMorgan would still be able to trade derivatives under the order...

"The provision of false, misleading, or inaccurate information undermines the integrity of the FERC decision-making process, the smooth operation of markets, and FERC's ability to ensure just and reasonable rates for customers," FERC said in an e-mailed statement. "The commission continuously has warned market participants of the consequences associated with failing to abide by FERC rules and regulations."

A spokeswoman for the bank said it is reviewing the decision and its next steps. "This is a novel use of FERC's authority over market-based rates and is unsupported by FERC's own regulations," Jennifer Zuccarelli said in an e-mail.

The commission is also investigating alleged manipulation by traders for Deutsche Bank AG and Barclays Plc. Since January 2011 the agency has announced 11 market-manipulation probes, and in March it reached a $245 million settlement with Constellation Energy Group Inc. over one of those cases.


This is also a nice illustration of the moral hazards of weakly regulating the markets. It was not all that long ago that Enron roiled the California economy by manipulating the prices of electricity. It is nice to see that someone is doing something, even if it involves no criminal indictments.

If the CFTC is unable to act in the commodity markets, someone has to do something to maintain orderly pricing and clearing markets for the use of the real economy.

And one might ask, why is a bank that is backstopped by the Federal Reserve and government guarantees on deposits gambling in the energy markets to this extent? Would that function not best be served by a purely private company, rather than a de facto Government Sponsored Enterprise (GSE)?

 

 

Tweet
Rate :Average note :4.8 (4 votes)View Top rated
Previous article by
Jesse
All articles by
Jesse
Next article by
Jesse
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Jesse

Visit Jesse's Cafe Americain for refreshing news on the markets
Jesse ArchiveWebsite
Most recent articles by Jesse
10/23/2014
10/22/2014
10/22/2014
10/22/2014
10/21/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer