JPMorgan Chase & Co. agreed to pay $410 million on Tuesday to settle accusations by U.S. energy regulators that it manipulated electricity prices.
The Federal Energy Regulatory Commission said the bank used improper bidding strategies to squeeze excessive payments from the agencies that run the power grids in California and the Midwest. The improper conduct occurred between September 2010 and November 2012, FERC said.
JPMorgan, the biggest U.S. bank, is paying a civil penalty of $285 million and returning $125 million in allegedly improper profits.
FERC said its investigation had found improper trading practices were used at Houston-based JPMorgan Ventures Energy Corp.