By Ryan Tracy
Euroinvestor
Barclays says it would go to U.S. district court to fight fines of nearly $470 million for alleged electricity-market manipulation, a rare decision by the subject of such a probe.
The bank said in a regulatory filing it would seek a court review if the agency moves forward with the penalty, setting up a battle with the U.S. Federal Energy Regulatory Commission, which on Oct. 31 accused the bank of manipulating California’s electricity market between 2006 and 2008.
The case is shaping up to be a test of FERC as the agency brings more enforcement actions against large banks rather than the energy firms it has traditionally regulated. Deutsche Bank AG (DB.XE, DB) and J.P. Morgan Chase & Co. (JPM) are the subject of separate FERC investigations. Both of those banks also deny breaking the law.
In a regulatory filing Thursday, Barclays told FERC that if the agency moves forward with its proposed penalty, the bank would elect a district-court hearing rather than settling the case or asking for an administrative hearing. Under federal law, the bank can effectively choose the venue for fighting the agency.
