JP Morgan Chase may have stolen from California electricity users
Theft o’ the day? A JP Morgan subsidiary is being investigated for gaming the California electricity market, Enron-style. Here, America’s media watchdogs point out (back in early July) that getting caught stealing can be bad publicity: http://www.bloomberg.com/news/2012-07-03/jpmorgan-probed-over-potential-power-market-manipulation-1-.html Listen to Bloomberg news quoting someone expressing concern:
“He’s got a PR nightmare in front of him,” said Paul Miller, a former examiner for the Federal Reserve Bank of Philadelphiaand analyst at FBR Capital Markets in Arlington, Virginia. “It’s another headline risk, which means more regulators, which means over-regulation, which will eventually hit their bottom line.”
See, this is how “over-regulation” happens. First you steal, then you hide, then you get caught, and then those accursed regulators over regulate. Before you know it, it’s harder to make money by stealing.
More at the Sacramento Bee today: http://www.sacbee.com/2012/07/30/4672960/electricity-trading-probed.html
A view with more respect for the abilities of Wall Street comes from Kevin Drum at Mother Jones: http://www.motherjones.com/kevin-drum/2012/07/gaming-electricity-markets-wall-street-style. After explaining JP Morgan Chase’s clever approach towards stealing from California ratepayers, Drum concludes:
Hooray for Wall Street! When it comes to clever financial manipulation with no socially redeeming value, nobody does it better. It’s nice to know that America is still #1 in something.