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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:

  • *FERC PROBES POTENTIAL POWER-MARKET MANIPULATION BY JPMORGAN
  • *FERC ASKS U.S. COURT TO ORDER JPMORGAN TO PRODUCE DOCUMENTS
  • *FERC SAYS PROBE COVERS JPMORGAN'S `BIDDING PRACTICES'   :JPM US
  • *FERC SAYS CALIFORNIA, MIDWEST OPERATORS CITED ABUSIVE TRADING

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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Tue, 07/03/2012 - 10:11 | Link to Comment veyron
veyron's picture

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

 

Their hands were in nearly every cookie jar ...

Tue, 07/03/2012 - 10:13 | Link to Comment HoofHearted
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...

Tue, 07/03/2012 - 10:15 | Link to Comment Pladizow
Pladizow's picture

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

Tue, 07/03/2012 - 10:19 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I'm shocked!  Shocked!!

Tue, 07/03/2012 - 10:42 | Link to Comment Tippoo Sultan
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. 

Tue, 07/03/2012 - 12:52 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

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

Tue, 07/03/2012 - 14:37 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Energy trading should be made a felony and stopped.

Tue, 07/03/2012 - 10:38 | Link to Comment disabledvet
disabledvet's picture

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

Tue, 07/03/2012 - 10:20 | Link to Comment veyron
veyron's picture

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

Tue, 07/03/2012 - 16:26 | Link to Comment trebuchet
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...

 

Tue, 07/03/2012 - 10:18 | Link to Comment Peter Pan
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.

Tue, 07/03/2012 - 10:48 | Link to Comment JLee2027
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.

Tue, 07/03/2012 - 10:12 | Link to Comment fuu
fuu's picture

Fuck you Jamie.

Tue, 07/03/2012 - 10:13 | Link to Comment tu-ne-cede-malis
tu-ne-cede-malis's picture

This is getting exhausting.

Tue, 07/03/2012 - 10:14 | Link to Comment the not so migh...
the not so mighty maximiza's picture

This is the stuff recoveries are made of.

Tue, 07/03/2012 - 10:15 | Link to Comment Amish Hacker
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?

Tue, 07/03/2012 - 10:15 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

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

Tue, 07/03/2012 - 10:27 | Link to Comment oddjob
oddjob's picture

It's the grift that keeps on grifting.

Tue, 07/03/2012 - 10:16 | Link to Comment Stoploss
Stoploss's picture

Barclay's, HSBC, JPM..

I see where this is going.

Holy shit..

Tue, 07/03/2012 - 10:43 | Link to Comment LongSoupLine
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. 

Tue, 07/03/2012 - 10:17 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Tue, 07/03/2012 - 11:13 | Link to Comment Ms. Erable
Ms. Erable's picture

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

Tue, 07/03/2012 - 10:17 | Link to Comment eclectic syncretist
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.

Tue, 07/03/2012 - 10:17 | Link to Comment adr
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?

Tue, 07/03/2012 - 10:25 | Link to Comment Hohum
Hohum's picture

adr,

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

Tue, 07/03/2012 - 16:19 | Link to Comment trebuchet
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? 

Tue, 07/03/2012 - 10:18 | Link to Comment CosmicDebris
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.

Tue, 07/03/2012 - 10:21 | Link to Comment insanelysane
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.

Tue, 07/03/2012 - 10:45 | Link to Comment LawsofPhysics
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.

Tue, 07/03/2012 - 11:15 | Link to Comment Bay of Pigs
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...

 

Tue, 07/03/2012 - 10:20 | Link to Comment GrinandBearit
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.

Tue, 07/03/2012 - 10:19 | Link to Comment Agent P
Agent P's picture

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

Tue, 07/03/2012 - 10:23 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Tue, 07/03/2012 - 10:19 | Link to Comment tarsubil
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.

Tue, 07/03/2012 - 10:40 | Link to Comment bigdumbnugly
bigdumbnugly's picture

+1

you mean this jon corzine?

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

http://dancirucci.blogspot.com/2009/11/life-on-corzine-beach.html

Tue, 07/03/2012 - 10:51 | Link to Comment Amish Hacker
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.

Tue, 07/03/2012 - 10:20 | Link to Comment Quinvarius
Quinvarius's picture

How many GD frauds is JPM involved in???

Tue, 07/03/2012 - 10:28 | Link to Comment fuu
fuu's picture

K -1

Tue, 07/03/2012 - 10:20 | Link to Comment Stoploss
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..

Tue, 07/03/2012 - 10:39 | Link to Comment tarsubil
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!

Tue, 07/03/2012 - 10:27 | Link to Comment torak
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!

Tue, 07/03/2012 - 10:29 | Link to Comment Dr. Engali
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!

 

http://www.youtube.com/watch?v=WgOIEGz7o_s

Tue, 07/03/2012 - 10:27 | Link to Comment firstdivision
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.

Tue, 07/03/2012 - 10:33 | Link to Comment GrinandBearit
GrinandBearit's picture

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

Tue, 07/03/2012 - 10:37 | Link to Comment firstdivision
firstdivision's picture

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

Tue, 07/03/2012 - 10:30 | Link to Comment PaperBear
PaperBear's picture

JPM = crooks.

Tue, 07/03/2012 - 10:31 | Link to Comment PaperBear
PaperBear's picture

Hang out all that filthy laundry.

Tue, 07/03/2012 - 10:37 | Link to Comment omi
omi's picture

What about RBC (Royal Bank Canada)?

Tue, 07/03/2012 - 10:38 | Link to Comment MFL8240
MFL8240's picture

The Dimon whorehouse back in the news for more sleazy illegal fraud.  Amazing!

Tue, 07/03/2012 - 10:43 | Link to Comment Catullus
Catullus's picture

Guess who made all the money last year in ERCOT.

Tue, 07/03/2012 - 10:51 | Link to Comment unwashedmass
unwashedmass's picture

 

silver market, anyone? 

Tue, 07/03/2012 - 11:07 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Dirty little secrets. Dirty little lies. We got our dirty little fingers in everybody's pie... [/dirty laundry]

Tue, 07/03/2012 - 11:12 | Link to Comment roadhazard
roadhazard's picture

You mean there is abusive speculation in the energy mkt. Well, you all know I am just fucking shocked.

Tue, 07/03/2012 - 11:40 | Link to Comment Downtoolong
Downtoolong's picture

No wonder Blythe was all yippity skippity on that CNBC interview a few months back talking about the energy trading systems and training JPM is subsidizing in Colorado. You can’t run a successful scam without muppets to take the other side of your trades. Come on in everyone, we’ve got just the right investment for your 401k plan.  

It’s such a relief when you get to see behind the curtain and all the pieces of the crime fit together so nicely.

Tue, 07/03/2012 - 11:45 | Link to Comment Dagny Taggart
Dagny Taggart's picture

Jamie Dimon: "Don't make me shut off your food stamps."

Tue, 07/03/2012 - 11:46 | Link to Comment divide_by_zero
divide_by_zero's picture

JPM must not have answered Obama's campaign cash call.

Tue, 07/03/2012 - 12:49 | Link to Comment Grand Supercycle
Grand Supercycle's picture

Rally Warning Confirmed...

As mentioned earlier, further equity strength and USDX weakness expected this year according to my analysis.

http://www.zerohedge.com/news/2012-12-24/market-analysis

Wed, 07/04/2012 - 06:37 | Link to Comment michigan independant
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