Published: 17 July 2013

The US electricity market's overseer has slapped Barclays with a record $470m penalty over manipulating power prices, in the latest heavy regulatory sanction against the UK bank. The Federal Energy Regulatory Commission's fines matched the amount proposed last year when it accused four former Barclays traders of manipulating physical power prices in California and other western US states in order to fraudulently boost financial derivative positions.

Barclays intended to fight the order, saying: "We believe that our trading was legitimate and in compliance with applicable law. The Order Assessing Civil Penalty is  by its very nature a one-sided document, and does not reflect a balanced and full description of the facts or the applicable legal standard."

The penalty may not be final. The bank and traders chose to forgo a hearing before an administrative law judge, Ferc said. If they do not pay penalties within 30 days, the case will be heard again in a federal court that could make its own findings, lawyers said. The announcement came the same day Barclays appointed a new finance director from JPMorgan Chase in a move to strengthen the investment banking expertise of its senior management team.
- FT

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