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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Tue, 07/03/2012 - 10:11 | 2583544 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 | 2583556 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 | 2583561 Pladizow
Pladizow's picture

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

Tue, 07/03/2012 - 10:19 | 2583586 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I'm shocked!  Shocked!!

Tue, 07/03/2012 - 10:42 | 2583724 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 | 2584330 12ToothAssassin
12ToothAssassin's picture

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

Tue, 07/03/2012 - 14:37 | 2584782 Bicycle Repairman
Bicycle Repairman's picture

Energy trading should be made a felony and stopped.

Tue, 07/03/2012 - 10:38 | 2583703 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 | 2583594 veyron
veyron's picture

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

Tue, 07/03/2012 - 16:26 | 2585107 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 | 2583582 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 | 2583769 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 | 2583547 fuu
fuu's picture

Fuck you Jamie.

Tue, 07/03/2012 - 10:13 | 2583555 tu-ne-cede-malis
tu-ne-cede-malis's picture

This is getting exhausting.

Tue, 07/03/2012 - 10:14 | 2583560 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 | 2583564 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 | 2583565 GeneMarchbanks
GeneMarchbanks's picture

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

Tue, 07/03/2012 - 10:27 | 2583629 oddjob
oddjob's picture

It's the grift that keeps on grifting.

Tue, 07/03/2012 - 10:16 | 2583572 Stoploss
Stoploss's picture

Barclay's, HSBC, JPM..

I see where this is going.

Holy shit..

Tue, 07/03/2012 - 10:43 | 2583746 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 | 2583577 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 | 2583878 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 | 2583578 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 | 2583581 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 | 2583617 Hohum
Hohum's picture


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

Tue, 07/03/2012 - 16:19 | 2585091 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 | 2583585 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 | 2583600 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 | 2583730 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 | 2583894 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 | 2583590 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 | 2583592 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 | 2583608 Dr. Engali
Dr. Engali's picture

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

Tue, 07/03/2012 - 10:19 | 2583593 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 | 2583717 bigdumbnugly
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.


Tue, 07/03/2012 - 10:51 | 2583785 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 | 2583596 Quinvarius
Quinvarius's picture

How many GD frauds is JPM involved in???

Tue, 07/03/2012 - 10:28 | 2583632 fuu
fuu's picture

K -1

Tue, 07/03/2012 - 10:20 | 2583598 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 | 2583716 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 | 2583615 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 | 2583624 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!



Tue, 07/03/2012 - 10:27 | 2583627 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 | 2583671 GrinandBearit
GrinandBearit's picture

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

Tue, 07/03/2012 - 10:37 | 2583698 firstdivision
firstdivision's picture

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

Tue, 07/03/2012 - 10:30 | 2583642 PaperBear
PaperBear's picture

JPM = crooks.

Tue, 07/03/2012 - 10:31 | 2583646 PaperBear
PaperBear's picture

Hang out all that filthy laundry.

Tue, 07/03/2012 - 10:37 | 2583699 omi
omi's picture

What about RBC (Royal Bank Canada)?

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