In the southwest corner of Arizona, just east of the California line, sits the Palo Verde nuclear plant, the provider of power to 4 million residents in four separate states.
Bloomberg News reports that it’s in this market that a Barclays trader manipulated electricity prices so brazenly in 2006 that he bragged in one message that he’d “totally fukked with the Palo mrkt,” according to federal regulators.
Almost a decade later, that message and other documents are coming back to haunt Barclays in a closely watched civil case that marks the first public test of the Federal Energy Regulatory Commission’s enforcement powers. At stake for Barclays and four associated traders is $488m in fines and profit disgorgement, the largest penalty ever sought by the agency.
The bank was supposed to get its day in a federal court in California on April 22. Now, though, the judge on his own initiative canceled oral arguments and the two sides are awaiting to learn what the next step will be.
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