Barclays were fined $453m (£300m) because they have been manipulating electricity prices.
The UK bank was given 30 day in order to pay back the profits they gained of the manipulated prices in California and other US states.
The Financial Energy Regulatory Commission (FERC) said that their actions “demonstrate an affirmative, coordinated and intentional effort to carry out a manipulative scheme”.
The regulators built their case on evidence acquired from electronic communications between traders. They were caught boasting their ability to manipulate market in many messages.By the way, did you check our business document templates?
Barclays, on the other hand, said they were disappointed by the action of FERC as according to their words there was nothing they had to be fined for. They added they would defend themselves and their reputation.
Trading for which they are accused of took place between November 2006 and December 2008.
The FERC expressed their concerns due to the fact that Barclays did not try to remedy them.
In spite of this, Barclays claimed they were acting legitimately, and in “compliance with applicable law”.
In the recent years there are always scandals around Barclays.
In 2012, UK and US regulators fined them £290m because they had tried to manipulate interest rates and earn money from the borrowing of million people around the world.
FERC was praised by Ron Wyden, chairman of the Senate’s Energy and Natural Resources Committee, on the message they send to traders and banks. In his words customers should stop living with the feeling that traders are “stacking the deck against them to rack up unjust profits”.