Jan 22 U.S. electricity regulators are expected
to impose a $1.5 million fine as early as Tuesday on a Deutsche
Bank AG subsidiary over alleged power market
manipulation, the Wall Street Journal reported, citing people
with knowledge of the matter.
The Federal Energy Regulatory Commission (FERC) earlier
proposed that the energy-trading arm of Deutsche pay the fine
and disgorgement of $123,198 in alleged ill-gotten profits last
year, saying it manipulated California power prices.
Last week, the FERC requested a further extension in the
legal deadline until Jan. 22 amid the ongoing talks. ()
Deutsche Bank has disputed FERC's allegation that it
manipulated the market by deliberately losing money on physical
transactions to profit in derivative markets.
The action is part of a larger crackdown by the regulator
targeting electricity trading schemes that it says resemble the
market manipulations that caused California's energy crisis more
than a decade ago, the Journal said.
The agency recently proposed a record $470 million fine on
Barclays Plc for allegedly manipulating power markets
in California and a six-month ban on JPMorgan Chase & Co's
energy trading arm from some of the U.S. power market.
Deutsche Bank's U.S. unit and an FERC spokeswoman could not
be reached for comment by Reuters outside regular business