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Regulators Are Probing Possible Power Market Manipulation By JPMorgan

Puts them right in the same category as corrupt, venal Enron.

THIS is "free market" capitalism at work??

It's been posted here recently the "great" and successful JP Morgan Chase gets massive corporate welfare, to the tune of $14 Billion of our tax dollars.

JPMorgan receives a government subsidy worth about $14 billion a year, according to research published by the International Monetary Fundand our own analysis of bank balance sheets. The money helps the bank pay big salaries and bonuses. More important, it distorts markets, fueling crises such as the recent subprime-lending disaster and the sovereign-debt debacle that is now threatening to destroy the euro and sink the global economy.
In other words, U.S. taxpayers helped foot the bill for the multibillion-dollar trading loss that is the focus of today’s hearing.
Sweeeeeeet, eh?

And now, adding further grave insult to injury, JP Morgan is being investigated by FERC:

The Federal Energy Regulatory Commission (FERC) is probing possible power market manipulation in California and other Midwest states by JPMorgan Chase, the Financial Times reports citing court documents.

The bank has been subpoenaed by FERC twice in the last three months, the report said.

According to the FT, the energy regulator is probing JPMorgan's power market bidding practices.

FERC says JPMorgan's practices may have inflated electricity costs by $73 million, the FT reports.

As part of the probe, FERC filed a petition in federal court requesting that JPMorgan produce 25 emails. The bank maintains that those emails are privileged, the report said.

may have inflated electricity costs by $73 million.

?????

How is this not just as bad as Enron? Hellooooooo? Congress? Oh yeah-- on summer vacation.

http://www.businessinsider.com/...

http://www.zerohedge.com/...

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Comment Preferences

  •  Tip Jar (13+ / 0-)

    "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

    by Superpole on Tue Jul 03, 2012 at 08:00:26 AM PDT

  •  Unreal!! (4+ / 0-)

    How we allow these thieves to continue their scams.  

    Too big to fail or jail?

    At the same time, JPMorgan Chase looks to be involved in the “Libor scandal”.  

    I think it's time to break up the big banks!! They are robbing the American people blind.

    Be the change you want to see in the world. -Gandhi

    by DRo on Tue Jul 03, 2012 at 08:22:01 AM PDT

    •  No, it's Unfuckingreal! What next? You know (4+ / 0-)
      Recommended by:
      DRo, cotterperson, shypuffadder, llywrch

      each and every American who has a mortgage could have gotten a big fat check from the government to pay down their loans to the f-ing banks.  The people who owned their homes already could have gotten a big fat check from the gov't to flush into the economy to provide all sorts of fucking jobs.  The banksters are the new maffia.

      Republicans only care about themselves, their money, & their power.

      by jdmorg on Tue Jul 03, 2012 at 08:27:39 AM PDT

      [ Parent ]

      •  And energy? (1+ / 0-)
        Recommended by:
        cotterperson

        Rates are through the roof and we can blame the banksters.

        Just think how many foreclosures were due in part to the energy rates.  And even people who don't even own have to have electricity, so this includes renters as well.

        Be the change you want to see in the world. -Gandhi

        by DRo on Tue Jul 03, 2012 at 08:48:03 AM PDT

        [ Parent ]

  •  It's not a subsidy from the government. (1+ / 0-)
    Recommended by:
    virginislandsguy

    Just to be clear, it's the market charging JPMC less because they're betting that if JPMC needs to be bailed out, the government will do it.

    So they don't 14 billion from the taxpayers for that.

    •  From the IMF report: (1+ / 0-)
      Recommended by:
      virginislandsguy
      As institutions with state backing are safer, investors ask for a lower risk premium, taking into account the expected future transfers from the government. Therefore, before crisis, the expected value of state guarantees is the difference in funding costs between a privileged bank and a non-privileged bank.
      pdf
    •  Take it up with Bloomberg Business Week (1+ / 0-)
      Recommended by:
      shypuffadder

      this is the exact quote:

      To be precise, JPMorgan receives a government subsidy worth about $14 billion a year, according to research published by the International Monetary Fund and our own analysis of bank balance sheets. The money helps the bank pay big salaries and bonuses. More important, it distorts markets, fueling crises such as the recent subprime-lending disaster and the sovereign-debt debacle that is now threatening to destroy the euro and sink the global economy.
      Even IF the $14 Billion is meant"only"  as a backstop to help JP Morgan with their stupid wall st. casino betting, WHY are we the sappy taxpayers on the hook?

      again, it's one more example of NO CHANGE under president Obama.

      It's still private investment/high risk-- with public money there for the bailout if it all goes south-- as it just did with their absurd betting out of their London office.

      This is not "free market" economics.

      FAIL.

      http://www.bloomberg.com/...

      "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

      by Superpole on Tue Jul 03, 2012 at 09:53:56 AM PDT

      [ Parent ]

  •  JP Morgan British CIO Gets (0+ / 0-)

    $21.5 Million golden parachute to retire after $9 Billion loss.

    weak, very weak.

    http://wonkette.com/...

    "A civilization which does not provide young people with a way to earn a living is pretty poor". Eleanor Roosevelt

    by Superpole on Tue Jul 03, 2012 at 09:40:06 AM PDT

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