|(c) photo: freedigitalphotos.net
Did a subsidiary of Deutsche Bank pocket illegal gains on the US-electricity market? Apart from its investigations the US-regulators of the US Federal Energy Regulatory Comission (FERC) followed up the suspicion in several proceedings and dealt with a number of different illegal practices.
The FERC is an independent agency that regulates the interstate transmission of electricity, natural gas and oil. FERC also reviews proposals to build liquefied natural gas (LNG) terminals and interstate natural gas pipelines as well as licensing hydropower projects.
Deutsche Bank is accused of market manipulation and energy trading in California. The payment is without admission of guilt. “We are glad to get this matter behind us.” a bank spokesman said.
The bank is accused of creating an impression of over capacity on the electricity market of California with systematic exchanges of electricity. The traders supposedly earned rewards they got from the regulators because they buy over electricity to eliminate apparent bottlenecks.
In this case Deusche Bank is a small fish, the penalty payment is negligible. For JP Morgan and Barclays higher penalty payments are imminent.
Author: Andreas Weitzell, Trainee Charlotte Office
und viele Grüße aus Charlotte
Reinhard von Hennigs