Bloomberg reports that Barclays was sued by the Federal Energy Regulatory Commission for failing to pay the fine 60 days after it was imposed. Barclays and four former traders from 2006 to 2008 manipulated trades on contracts to deliver physical electricity in western U.S. power markets with the intent of moving an index to benefit the bank’s other bets on financial swaps, FERC alleged.
Barclays denies wrongdoing and claims FERC can’t ask a judge to enforce the fine until the bank has a chance to challenge the agency’s decision to issue the penalty, made after an adversary administrative process that didn’t afford Barclays the opportunity to defend itself.
'In essence, FERC asserts that this court must serve as a rubber stamp', Thomas Nolan, an attorney for Barclays, said in a court filing.
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image: © Ricardo Ricote Rodríguez