Barclays, traders fined $487.9m by U.S. regulator

Barclays Plc and four former traders must pay a combined $487.9 million in fines and penalties, the U.S. Federal Energy Regulatory Commission said in an order tied to an investigation of alleged manipulation of energy markets.

The agency directed the company and traders to pay $453 million in civil penalties to the U.S. Treasury within 30 days, according to an order issued Tuesday. The London-based bank must also give up $34.9 million in profits, to be distributed to programs that help low-income homeowners pay energy bills in California, Arizona, Oregon and Washington, it said.

“Consumers have the right to heat and power their homes without fear that traders are stacking the deck against them to rack up unjust profits,” said Senator Ron Wyden, an Oregon Democrat and chairman of the Energy Committee. He said the fine “sent a strong message to traders and banks Wednesday that manipulating energy markets comes at a steep cost.”

The penalties, which the agency first proposed Oct. 31, stem from an investigation in the FERC’s crackdown on market manipulation. Since the beginning of 2011, the agency has made public at least 13 probes of energy-market gaming, including investigations of trading units at Deutsche Bank AG and JPMorgan Chase & Co.

“We believe that our trading was legitimate and in compliance with applicable law,” Marc Hazelton, a Barclays spokesman, said Tuesday in a statement. “We intend to vigorously defend this matter.” (Bloomberg)