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A little known U.S. agency is trying to wring $500 million out of JP Morgan. What the FERC?!

Not many people are aware of the U.S. Federal Energy Regulatory Commission, which was a minor player before the Enron energy-manipulation scandal led Congress to bolster its firepower in 2005 with new penalties for bad actors. FERC alleges that JP Morgan manipulated energy prices at some old power plants it acquired when Bear Stearns dissolved in 2008, causing California and Michigan to pay $83 million more than they should have for power. If the reported settlement with JP Morgan goes through, it will be the highest fine in the agency’s history.

Here's how JP Morgan could have manipulated energy prices, if the allegations are true: