JPMorgan to Pay $410 Million to Settle US Power Market Case
Financial services giant JPMorgan Chase & Co, (NYSE: JPM – $55.58) agreed to pay $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, 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. This year Dimon has moved to resolve multiple government investigations and correct problems that regulators have found at the bank in an effort to take a more appeasing compliance stance as new rules are imposed more than five years after the start of the financial crisis. As one of the largest banks in the United States, and due to last year’s multi-billion dollar trading mishap, JPMorgan probably faces more regulatory scrutiny than most banks. I still like the shares for the long run, but these factors could make for an uneven ride for even the more aggressive investor from time to time.