Bloomberg - Barclays does deal to settle with U.S. regulator

A U.S. regulator agreed to let Barclays pay $105 million to resolve claims that the bank manipulated western U.S. electricity markets, avoiding a trial over a proposed record penalty more than four times as high.

Bloomberg News reports that the deal ends a court battle over a $470 million fine by the Federal Energy Regulatory Commission tied to an alleged scheme in 2006 through 2008 for making money-losing physical bets to reap profits in financial positions. Under the terms of the agreement disclosed Tuesday by the agency, Barclays will pay a $70 million civil penalty and forfeit $35 million in proceeds from its conduct. The bank isn’t admitting or denying wrongdoing.

The London-based bank’s challenge to the fine has been closely watched by the industry because it was the first such case filed since the energy regulator’s authority to fight manipulation was strengthened in 2005. The oversight push came in the wake of the western U.S. crisis that culminated in blackouts for millions of people and Enron Corp.’s bankruptcy.

Hit the link below to access the complete Bloomberg News article:

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