BankThink

Receiving Wide Coverage ...JPM, FERC Update: Very shortly after yesterday's Scan, JPMorgan Chase, as predicted, formally settled with the Federal Energy Regulatory Commission over energy market manipulation allegations. Kudos to the Journal for nailing the amount of the fine associated with the widely anticipated settlement in an earlier report on the matter: $410 million. Dealbreaker, however, gets the credit for best explanation of the settlement agreement. A choice quote from the blog post by Matt Levine: "FERC built a terrible box, and the box had some buttons that were labeled 'push here for money,' and JPMorgan pushed them and got money." JPM didn't admit or deny any violations as part of the settlement and individual traders, including commodities head Blythe Masters, were exempt from separate punishment. The bank's official statement on the matter, per the FT: "We're pleased that this matter is behind us. Due to reserves previously set aside, this settlement will have no material impact on earnings." Meanwhile, the Times' Dealbook predicts JPM will pay to settle further U.S. inquiries. "Its new and conciliatory approach — a departure for the bank and its leader, Jamie Dimon, who generally has taken a hard line with the authorities — is yielding mixed results," the article notes. "Government officials, stung by the bank's past displays of hubris, may drive up the price of settlements or resist the overtures altogether."

The best way to judge a mobile wallet's potential is to see how it handles failure.

The leaders of the Securities and Exchange Commission and Commodity Futures Trading Commission were pressed by lawmakers on Tuesday about their progress implementing new rules under the 2010 Dodd-Frank Act.

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Receiving Wide Coverage ...JPM Energy-Market Allegations: The Federal Energy Regulatory Commission released a two-page document on Monday, detailing its (already widely reported) accusations against JPMorgan Chase for energy-market manipulation. Per the Journal, "the document describes several trading schemes, including submitting bids that 'falsely appeared' attractive to electricity-system operators and led to payments to the bank valued at 'tens of millions of dollars at rates far above market prices.'" The FT notes the allegations "echo the electricity-market manipulation schemes perpetrated by Enron, the bankrupt energy company." The allegations are expected to precede a formal settlement announcement, which could come essentially any minute now. Papers must be talking to different anonymice because estimates of the settlement's cost vary. The Journal pegs the associated fine to be "roughly $410 million." Dealbook says the settlement "could cost the bank as much as $500 million" and the FT estimates the settlement to be "about $400 million", which would be lower than the fine FERC levied against Barclays earlier this month. JPM was declining to comment on the allegations on Monday. American Banker readers will recall the bank announced plans on Friday to sell or spin off its physical commodities unit, ahead of increasing regulatory scrutiny.

A new self-regulatory organization for crypto-currencies could do a lot to advance the industry, but risks becoming co-opted by the government and undermining the core value proposition of digital cash.

Smart employers know there are no bounds on talent that are defined by race, gender, ethnicity or sexual orientation.

Interchange, the new PaymentsSource blog, is the new destination for industry opinion and debate. Learn how to become a part of the discussion.

The federal complaint against Castle & Cooke Mortgage issued by the Consumer Financial Protection Bureau looks to be the first of many enforcement actions taken against mortgage originators for failing to follow new loan officer compensation rules.