$470 million energy fine 'unjustified', says Barclays
December 17 , 2012
Barclays said on Sunday that U.S. regulators' proposed fines of $470 million for the bank's alleged manipulation of energy markets were "unjustified".
The Federal Energy Regulatory Commission (FERC) has accused four traders at the London-based bank of manipulating power prices in the U.S. from 2006 to 2008.
Barclays denies the claims.
According to a filing on Friday, the bank said FERC’s allegations were "based on an economically irrational theory".
The Office of Enforcement (OE), a branch of FERC, claim the team of four traders exchanged messages explaining how they would use certain trades in one market to benefit in another.
The traders are accused of manipulating power prices, which resulted in losses for rival power traders of $139 million, and won the bank $34.9 million.