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Jan 29 (Reuters) - The U.S. Federal Energy RegulatoryCommission (FERC) correctly found that traders for Barclays Plc manipulated the California power market from late 2006to 2008 and should pay a record $470 million in penalties, FERCstaff said in a report.
The report found the bank and four of its traders usedlosses in physical markets to make gains in financial markets.
The FERC staff said the bank lost about $4.1 million throughits physical cash trades, but "reaped gains of approximately$34.9 million in its financial positions."
The staff said Barclays' manipulative trading scheme costother market participants at least $139.3 million.
In an email statement, Barclays said: "We believe that ourtrading was legitimate and in compliance with applicable law.
"The FERC should reject the Office of Enforcement'srecommendations, decline to assess any penalties, and terminatethis matter without any further proceedings. If the FERCproceeds, we intend to vigorously defend this matter in federalcourt," Barclays said.
