WASHINGTON, July 31 Two Democratic Senators on
Wednesday asked U.S. energy regulators for more details on how
terms of a settlement were reached on alleged power market
manipulation in California and the Midwest by a unit of JPMorgan
Chase & Co.
In a letter to Jon Wellinghoff, chairman of the Federal
Energy Regulatory Commission (FERC), Elizabeth Warren and Edward
Markey, both of Massachusetts, questioned whether the settlement
announced on Tuesday included "adequate refunds to defrauded
JPMorgan Ventures Energy Corp agreed to disgorge $125
million in profits and pay a civil penalty of $285 million for
12 "manipulative bidding strategies" identified by regulators as
having taken place between September 2010 and November 2012.
It was the second largest penalty in FERC's history but, the
Senators wrote, "equal to roughly 1.3 percent of JPMorgan's 2012
Warren and Markey also asked FERC why certain JPMorgan
executives accused by FERC "of stiff-arming its investigators by
refusing to comply with subpoenas," will not be punished, and
why the company was permitted to avoid an admission of guilt.
Craig Cano, a spokesman for FERC, said the commission does
not comment on Congressional correspondence but that Wellinghoff
would respond to the Senators.