US regulators say Barclays manipulated electric energy markets
U.S. authorities
have committed Barclays for manipulating electricity prices and fined $453m for
London’s Barclays Bank and four
of its traders..Barclays was accused
of manipulating the electricity markets in California and other states from November
2006 to December 2008.
The
$453 million Barclays fine is owed to the U.S. Treasury. The most part will
be paid by the bank itself. But trader Scott Connelly has to pay $15 million
and traders Daniel Brin, Karen Levin and Ryan Smith have to pay $1 million
every one . Barclays also must give $34.9m
of its profits, to be
distributed to low-income and assistance program in Arizona,
California, Oregon
and Washington.
Barclays
said it intended to "strongly defend this matter". But the bank
claimed that they are disappointed by this decision.
According
to the FERC complaint, the traders were talking about manipulating markets in
their electronic communications.
Barclays bank was fined 290 million
pounds by US authorities last year for trying to manipulate the currency
exchange rates.
