BARCLAYS FACES FINE FOR MANIPULATING MARKETS.
US regulators have threatened to fine Barclays bank roughly $470 million to settle allegations that the bank and four traders manipulated California electricity markets, reviving the spectre of
The Federal Energy Regulatory Commission (FERC) proposed fine, which was announced on Wednesday, would be the largest penalty ever levied by the commission and potentially exceeds the fine Barclays paid over the Libor bid-rigging scandal that cost Chief Executive Robert Diamond his job.
The bank has 30 days to show why it should not be penalised for an alleged scheme of manipulating physical electricity prices at a loss in order to make profits in related positions in the swaps market, a strategy known as a “loss-leader”.
British bank Barclays said it would fight the agency, likely setting up a landmark legal battle that could set a precedent over whether the once-common trading ploy in commodity markets is illegal or simply ill-advised.
Author: Moses Echodu
Moses is a Ugandan writer and blogger. Studied information technology with major interests in Journalism.He is passionate about sports but at times ventures into other fields
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