JPMorgan Chase & Co agreed on Tuesday to pay US$410 million to settle allegations of power market manipulation in California and the Midwest, the latest in a series of high-profile inquiries by U.S. federal energy regulators.
The settlement, announced by the Federal Energy Regulatory Commission (FERC), will allow Chief Executive Jamie Dimon to close the books on one of several costly run-ins with regulators over the past year. It came days after the bank said it was quitting the physical commodities business.
The US is demanding a sum of $6 billion - the total loss associated with the "London Whale" debacle - in compensation for JPMorgan's mis-selling of mortgage-backed-securities. The FT reports that, unsurprisingly, the bank is resisting the payment, which would be its single biggest penalty in a catalog of expensive run-ins with US authorities and one of the largest post-crisis settlements by any bank.
By David Henry NEW YORK (Reuters) - John Hogan, who was named chief risk officer at JPMorgan Chase & Co last year just as its London Whale trades began racking up billions of dollars of losses, may leave the company, CEO Jamie Dimon said on Thursday. Hogan will hold a new title of chairman of risk after returning to work on Monday from a leave he started in January, Dimon said in a memo to employees which was seen by Reuters. Ashley Bacon, Hogan's deputy, will become chief risk officer. ...