• 7 hours Saudi Fund Buys Stake in Hollywood Talent Agency
  • 4 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 12 hours Putin Is A New Russian Stalin - Victory For The Next 6 Years
  • 3 days Russian hackers targeted American energy grid
  • 3 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 7 hours G20 Rejects Calls for Cryptocurrency Regulation
  • 4 hours Trump Bans Venezuelan National Cryptocurrency
  • 2 hours Self-Driving Cars' First Fatality
  • 3 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 4 hours Is Trump Harming Oil Industry?
  • 7 hours Volkswagen To Announce $340 Million Tennessee Investment To Build New SUV For U.S. Market
  • 8 hours Africa Is The New Land Of Opportunity For Investors
  • 11 hours Miners against Government: Largest Miners In Congo Quit Chamber Of Commerce Amid Growing Tax Dispute
  • 3 days HAPPY RIG COUNT DAY!!
  • 3 days Spotify to file $1 billion IPO
  • 4 hours Tillerson just sacked ... how will market react?
Oil Prices Rise Despite Climbing Rig Count

Oil Prices Rise Despite Climbing Rig Count

The oil rig count rebounded…

Equity Markets Surge Despite Tillerson Exit

Equity Markets Surge Despite Tillerson Exit

Markets are enjoying a less-threatening…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

The FERC Boldly Takes on Wall Street

Wall Street is finding itself in a bitter fight against a relatively new organisation that is intent to see some of the largest banks charged for market manipulation.

The Federal Energy Regulatory Commission (FERC) is a government watchdog which oversees the oil, natural gas, and electricity markets in the US. In 2005, and as a result of the Enron scandal, the agency was given additional resources and powers to not only pursue energy companies, but also Wall Street banks, and hold them accountable for any illegal activities that they may have been involved in.

Related Article: Why US Energy and Economic Prospects Improve if Obama Loses

Just lately it has set its sights on JP Morgan Chase, Deutsche Bank, and Barclays, accusing them of manipulating energy prices.

Tyson Slocum, the director of the energy program for Public Citizen, claimed that the FERC is “the most powerful agency that no one knows about.”

Barclays and JP Morgan are aggressively contesting the attacks against them, stating that the accusations are overreaching.

Normally banks like to avoid confrontations with regulators, and try to settle issues fairly quickly and quietly. For example, the New York Times reported in June that Barclays had struck a deal with regulators to pay $450 million to settle accusations that it had manipulated interest rates during the 2008 financial crisis.

It is possible that the unusually aggressive response to the accusations is as a result of a far larger regulatory battle, which the financial institutions do not want to lose. The FERC, unlike other regulators has been granted the power to fine firms up to $1 million a day for every violation that it commits, which could potentially tie banks into years of costly law suits.

By. James Burgess of Oilprice.com

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News