[ by Melanie Gretchen ]

Deutsche Bank settled with the Federal Energy Regulatory Commission ("FERC") which charged the bank with manipulating California's energy markets in 2010.  The German bank neither admitted nor denied wrongdoing in this matter.

FERC Findings and Allegations. The energy commission alleged that some of Deutsche Bank's employees had entered into a number of transactions in early 2010 that unfairly benefited the bank:

"Deutsche Bank violated the commission's anti-manipulation rule by engaging in a scheme in which Deutsche Bank entered into physical transactions to benefit its financial position."

The commission, which oversees the oil, natural gas and electricity sectors, has worked toward clamping down on market abuses.  Other efforts include levying a $470 million penalty against Barclays related to trading activity, which if successful would be the largest ever made by the commission.

FERC Sanctions. Under the agreement with the commission, Deutsche Bank will pay $1.5 million and surrender around $170,000 in profit related to the energy trading activity.     [Dealbook, 1/23/13]