Barclays fined $435m in US over energy market-rigging

BBC News, 16 July 2013

US regulators say Barclays manipulated
electric energy markets

US regulator the Federal Energy Regulatory Commission has fined Barclays $435m (£287m) for manipulating energy markets in California and other states from Nov 2006 to Dec 2008.

Barclays and four of its traders must also pay $34.9m to the Low-Income Home Energy Assistance Programs of Arizona, California, Oregon, and Washington.

They have 30 days to pay the fine.

Barclays has said it will fight the charges.

"We are disappointed by the action that FERC took today. We believe the penalty assessed by the FERC is without basis, and we strongly disagree with the allegations made," said Barclays in a statement.

"We intend to vigorously defend this matter."

In addition to the company fine, Barclays traders Daniel Brin, Scott Connelly, Karen Levine and Ryan Smith - who are accused of manipulating an index relating to electric energy prices in the western part of the US - were ordered to pay substantial sums.

Mr Connelly must pay $15m, while Mr Brin, Ms Levine and Mr Smith were told they owed $1m each.

The FERC had initially levelled the charges against Barclays in October 2012.

This is the latest scandal to rock the bank.

Chief Executive Bob Diamond was forced to resign last year after Barclays was fined by regulators on both sides of the Atlantic for rigging the key Libor interest rate.

The fine is larger than the one it paid over libor fixing.