WASHINGTON — U.S. energy regulators are accusing JPMorgan Chase & Co. of manipulating electricity prices in California and the Midwest in 2010 and 2011.
The Federal Energy Regulatory Commission said in an enforcement notice Monday the bank used improper bidding strategies to squeeze excessive payments from the agencies that run the power grids in California and the Midwest.
JPMorgan has reportedly been in negotiations with the regulator to reach a settlement over the allegations. The agency recently levied a $453 million fine on Barclays, Britain's second-largest bank, for manipulating electricity prices in California and other western states. Barclays is disputing the allegations.
The notice could be a prelude to a settlement with New York-based JPMorgan.
JPMorgan declined to comment.