FERC Wants $1.5M Market Fraud Fine For Deutsche Bank

Law360, New York (September 6, 2012, 5:58 PM EDT) -- Deutsche Bank AG’s energy trading unit should be fined $1.5 million because it manipulated electricity prices in California by artificially boosting exports to increase the value of speculative investments in transmission line capacity, the Federal Energy Regulatory Commission said Wednesday.

According to FERC, staffers at Deutsche Bank Energy Trading LLC determined that the Silver Peak line connecting California and Nevada had been historically clogged in the export direction, and proceeded to buy financial instruments that would gain value if that congestion continued. In early 2010, however,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.