Jan 22 (Reuters) - U.S. electricity regulators are expectedto impose a $1.5 million fine as early as Tuesday on a DeutscheBank AG subsidiary over alleged power marketmanipulation, the Wall Street Journal reported, citing peoplewith knowledge of the matter.
The Federal Energy Regulatory Commission (FERC) earlierproposed that the energy-trading arm of Deutsche pay the fineand disgorgement of $123,198 in alleged ill-gotten profits lastyear, saying it manipulated California power prices.
Last week, the FERC requested a further extension in thelegal deadline until Jan. 22 amid the ongoing talks. ()
Deutsche Bank has disputed FERC's allegation that itmanipulated the market by deliberately losing money on physicaltransactions to profit in derivative markets.
The action is part of a larger crackdown by the regulatortargeting electricity trading schemes that it says resemble themarket manipulations that caused California's energy crisis morethan a decade ago, the Journal said.
The agency recently proposed a record $470 million fine onBarclays Plc for allegedly manipulating power marketsin California and a six-month ban on JPMorgan Chase & Co's energy trading arm from some of the U.S. power market.
Deutsche Bank's U.S. unit and an FERC spokeswoman could notbe reached for comment by Reuters outside regular businesshours.
Barclays (BARC)