Deutsche Bank unit faces fines in US over energy trading: WSJ
January 23, 2013, 12:01 am TWN
U.S. electricity regulators are expected to impose a US$1.5 million fine as early as Tuesday on a Deutsche Bank AG subsidiary over alleged power market manipulation, the Wall Street Journal reported, citing people with knowledge of the matter.
The Federal Energy Regulatory Commission (FERC) earlier proposed that the energy-trading arm of Deutsche pay the fine and disgorgement of US$123,198 in alleged ill-gotten profits last year, saying it manipulated California power prices.
Last week, the FERC requested a further extension in the legal deadline until Jan. 22 amid the ongoing talks.
Deutsche Bank has disputed FERC's allegation that it manipulated the market by deliberately losing money on physical transactions to profit in derivative markets.
The action is part of a larger crackdown by the regulator targeting electricity trading schemes that it says resemble the market manipulations that caused California's energy crisis more than a decade ago, the Journal said.