German bank Deutsche Bank AG will pay nearly $1.7 million to settle allegations it manipulated electricity markets in California in 2010, federal regulators said on Tuesday.
The settlement is the latest victory for the U.S. Federal Energy Regulatory Commission (FERC) in its crackdown on alleged trading schemes reminiscent of the Enron scandal that led to the California energy crisis more than a decade ago.
FERC has also proposed imposing a record $470 million on Barclays Plc for allegedly manipulating power markets in California and banning JPMorgan Chase & Co's energy trading arm from some U.S. power markets for six months.
"Deutsche Bank violated the Commission's anti-manipulation rule by engaging in a scheme in which Deutsche Bank entered into physical transactions to benefit its financial position," FERC said in a statement.
FERC said in the order that Deutsche Bank also agreed to disgorge "unjust profits" of $172,645 for manipulating the California power
This article is only available in full to Compliance Complete
UK and Europe North America Subscribers who are logged in.
Please log in to see if you can view this content.