Regulator charges just an error, Morgan says

September 22, 2012 

JPMorgan Chase & Co., accused of misleading regulators in an investigation of its electricity trading in California, says it was just a mistake.

The big investment bank said in a prepared statement that it "made an inadvertent factual error" when it submitted records in response to inquiries from investigators.

The Federal Energy Regulatory Commission said Thursday it believes Morgan "submitted misleading information" to state and federal officials. FERC said it was considering suspending Morgan from trading in California's electricity market.

In a prepared statement, Morgan said it promptly corrected its mistake and notified FERC of the problem.

"Such an inadvertent error does not justify revoking JPMorgan's" license to trade in California, the bank said.

FERC had begun an informal inquiry, based on a complaint from California officials, that Morgan's power traders had used improper bidding tactics to extract $73 million in illegal profits from California's electricity market. The company has said its trading strategies were proper.

– Dale Kasler

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