Jan 29 The U.S. Federal Energy Regulatory
Commission (FERC) correctly found that traders for Barclays Plc
manipulated the California power market from late 2006
to 2008 and should pay a record $470 million in penalties, FERC
staff said in a report.
The report found the bank and four of its traders used
losses in physical markets to make gains in financial markets.
The FERC staff said the bank lost about $4.1 million through
its physical cash trades, but "reaped gains of approximately
$34.9 million in its financial positions."
The staff said Barclays' manipulative trading scheme cost
other market participants at least $139.3 million.
In an email statement, Barclays said: "We believe that our
trading was legitimate and in compliance with applicable law.
"The FERC should reject the Office of Enforcement's
recommendations, decline to assess any penalties, and terminate
this matter without any further proceedings. If the FERC
proceeds, we intend to vigorously defend this matter in federal
court," Barclays said.