Regulators threatened to fine Barclays roughly $470 million to settle allegations that the bank and four traders manipulated California electricity markets between 2006 and 2008.
It could possibly be the biggest penalty ever levied by the Federal Energy Regulatory Commission and potentially exceeds the fine Barclays paid over the Libor bid-rigging scandal that cost CEO Robert Diamond his job.
The FERC also said four of the company’s power traders have 30 days to show why they should not be assessed a total of $18 million in civil penalties.
Bank documents showed traders bragged about how they would “crap on” certain markets to profit in other ones.
The bank has 30 days to show why it should not be penalized for an alleged scheme of manipulating physical electricity prices at a loss in order to make profits in related positions in the swaps market.
British bank Barclays said it would fight the agency.