Deutsche in talks to settle U.S. power manipulation case: FERC

NEW YORK Fri Jan 11, 2013 4:25pm EST

NEW YORK Jan 11 (Reuters) - U.S. energy market regulators are in settlement talks with Deutsche Bank over allegations the bank manipulated the California electricity market, staff of the Federal Energy Regulatory Commission said in a filing Friday.

FERC proposed Deutsche pay a $1.5 million fine and disgorge of $123,198 in alleged ill-gotten profits last year.

Deutsche Bank has disputed FERC's allegation that it manipulated the market by deliberately losing money on physical transations to profit in derivative markets.

On Friday, FERC staff requested a seven day extension of a filing deadline while the settlement talks were underway.