Enron Redux Has JPMorgan Probed For Abusive Energy Trading

Tyler Durden's picture

While the CIO was clearly not populated by the smartest guys in the room, it appears the bank that just can't get a break has hit another snag as the Federal Energy Regulatory Commission is probing them over 'bidding practices' and abusive trading in California and Midwest energy markets. Via Bloomberg:


Is there a wondrous capital structure here for Bethany Mclean to investigate? We can only assume that JEDI Morgan is 'not the Chewco FERC is looking for'.

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veyron's picture

"the bank that just can't get a break "


Their hands were in nearly every cookie jar ...

HoofHearted's picture

Glad to be short JPM, but just waiting for them to get pardoned by Geithner or Bernanke or their minion....Obama. They will crush me somehow. Always do...

Pladizow's picture

Without fraud there is no Wall St, Washington, Banking, London or America.

Tippoo Sultan's picture

Alas, Dimon is one of "their own;" mere headline created on a slow summer's day before the 'Fourth. Few are watching; those who are, do not care.

Absolutely nothing will come of it. 

12ToothAssassin's picture

Is there a market NOT manipulated by JPM? Wouldnt that be a shorter list?

Bicycle Repairman's picture

Energy trading should be made a felony and stopped.

disabledvet's picture

You mean without PROSECUTION of fraud, etc...,etc... "there isn't any of" all that crap you mentioned.

veyron's picture

Start taking some profits ... don't wait for the extra few cents ...

trebuchet's picture

short now if you believe central bank accommodation is not going to ease, beginning thursday. 


The expected cut in ECB rates + BoE QE is getting priced in.  Im chicken as I'm not convinced it will happen but am not going to bet against market.


Some Tylers on ZH keeps saying, no big monetary policy steps until market drops significantly, other saying it could happen.... 


right now increasing risk asset correlation, skew to the buy side, EPS downard revisions, maco data falling off a cliff etc suggesting a BIG drop when/if it comes...


Peter Pan's picture

Is there anything that JP Morgan does that isn't dependent on manipulation, fraud or government subsidy or patronage?.....................mmmm i thought so.

JLee2027's picture

As I said in the other thread - JP Morgan is the Jerry Sandusky of the financial markets.  Endless abuse and financial rape with countless victims.

fuu's picture

Fuck you Jamie.

tu-ne-cede-malis's picture

This is getting exhausting.

the not so mighty maximiza's picture

This is the stuff recoveries are made of.

Amish Hacker's picture

JPM was trying to manipulate prices through abusive trading and bidding practices? What do they think this is, the stock market?

GeneMarchbanks's picture

Enron.... Enron.... nope doesn't ring a bell.

oddjob's picture

It's the grift that keeps on grifting.

Stoploss's picture

Barclay's, HSBC, JPM..

I see where this is going.

Holy shit..

LongSoupLine's picture

Hey, I've got an idea.  Put them all on TV and shoot them in the fucking head.

I know, I know...I'm brilliant. 

Dr. Engali's picture

How about probing them for their precious metals manipulation? No......? I didn't think so.

Ms. Erable's picture

Why arrest someone for murder when you can catch them spitting on the sidewalk?

eclectic syncretist's picture

Why not?  How many people at Enron went to jail?  As I recall the only ones who served time did so because they were involved in accounting fraud (screwing wall street), not corporate fraud.  Screwing the people illegally was OK then, and apparently JPM thinks it's OK now.  Why shouldn't they?  Fraud against the people has been given the green light by government to be implemented as a business model.

adr's picture

Is there going to be an investigation into Crude flying 15% higher in less than two full days of trading during the lowest volume in recent history?

The excuses are there to use, but the reason for this increase is not apparent.

Headlines say, "Crude rises on hopes more bank stimulus will increase demand for commodities."

Demand for actual commodities, or just demand from speculators for the contracts?

Hohum's picture


Don't complain, man.  Higher prices will coax more Texas tea out of the ground.

trebuchet's picture

crude rising since Iran parliament passing a law that authorizes govt to block straights of hormuz. 


is that an authorization for war? 

CosmicDebris's picture

I have a question.  Actually two-part.  1) is there a sudden (last few days) surge of banks being under big time scrutiny, or is it pretty much par for the course?  2) and if it is a sudden surge, is it in some way politically driven, i.e., it benefits some other entity via the govt. tightening the screws, or is this surge more related to enough 'normal people' complaining about banks bad behavior.  Or maybe is it a dog and pony show to make the common man think the Government had no knowledge of these shady bank dealings so that when the shtf (maybe sooner than later) the govt. will appear to be the good guys all along?  Thanks.

insanelysane's picture

Par for course.  If Congress wasn't out on a 2 month vacation, they would drag someone in to say sorry and that they won't do it again.  Will need to wait until the Fall for that though.

LawsofPhysics's picture

Not quite.  During the savings and loan scandal (which was in many ways the same leveraging make-belive assets values etc.)  many people went to fucking jail.  The only difference now is that the CONgress is wholly owned and the regulatory capture is 100%.  They got rid of any real  banking laws in the 90's.  Nothing short of a revolution and guillotines will change things now.  Welcome to another robber-baron era in human history.

Bay of Pigs's picture

I tried explaining that on another site the other day and got junked to oblivion by the sheep there.

People still don't get it. LOL...


GrinandBearit's picture

They siphon billions in profits and pay a few million in fines... nothing new.   They'll get away with it like they always do.

Agent P's picture

You know...it's starting to seem like the banks just aren't playing by the rules.

Dr. Engali's picture

Rules,like taxes, are for little people. Leona Helmsley told me so.

tarsubil's picture

These bankers better get their house in order, and by house in order I mean their books properly fixed, otherwise they are going to get a stern talking to like the Honorable Jon Corzine. A very stern talking to.

bigdumbnugly's picture


you mean this jon corzine?

yes, yes.  the banksters are dreading the severe repercussions of the stern talking to they are gonna get.


Amish Hacker's picture

Nice. If you google "corrupt banker impunity," this should be the site that comes up. But maybe Jon deserves a little vacation after all the strain he's been under. Still, taking the Gulfstream V to St. Barths with the current main squeeze does seem like an unusual way to express deep contrition.

Quinvarius's picture

How many GD frauds is JPM involved in???

Stoploss's picture

They're all going to be exposed at the same time, and i am sick of popcorn.

Blood, i want to see blood..

tarsubil's picture

Blood? Why, you're soaking in it! That is what America is best at. Liberating blood from people's bodies. Happy In Dependence Day!

torak's picture

I understand that government regulators are now hiring Catholic nuns with yardsticks to dole out punishment to the execs at the various banks and corporations that are running roughshod over what few laws Congress have left in place.

When Sister Mary Catherine is set loose -- be afraid, Jamie...very afraid!

Dr. Engali's picture


After careful and rigorous examination I have come to the conclusion that the "meh" girl is definitely not sporting a camel toe. Which can mean only one conclusion......that lady is a man baby!



firstdivision's picture

I work in that industry, and can tell you that JPM isn't the only one rigging things, GS has been pulling shady crap.

GrinandBearit's picture

You work for Satan... I'd quit asap.

firstdivision's picture

If that's how you think of the Power Industry, then yes.

PaperBear's picture

Hang out all that filthy laundry.

omi's picture

What about RBC (Royal Bank Canada)?