Friday, May 31, 2013

Reuters: Regulatory News: New Gold to acquire exploration company Rainy River

Reuters: Regulatory News
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New Gold to acquire exploration company Rainy River
May 31st 2013, 11:28

TORONTO | Fri May 31, 2013 7:28am EDT

TORONTO May 31 (Reuters) - New Gold Inc agreed on Friday to acquire gold exploration company Rainy River Resources Ltd for about C$310 million ($301 million) in a bid to expand its asset base in Canada.

New Gold is offering 0.5 of a New Gold common share for each Rainy River share tendered, or C$3.83 in cash. It said the offer represents a premium of 42 percent over Rainy River's closing price on the Toronto Stock Exchange on Thursday.

Toronto-based Rainy River owns the gold project of the same name located in northwestern Ontario. The project has about 4 million ounces in proven and probable gold reserves and some 6.2 million ounces in measured and indicated gold resources.

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Reuters: Regulatory News: RPT-U.S. discovery of rogue GMO wheat raises concerns over controls

Reuters: Regulatory News
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RPT-U.S. discovery of rogue GMO wheat raises concerns over controls
May 31st 2013, 10:59

Fri May 31, 2013 6:59am EDT

By Carey Gillam and Julie Ingwersen

May 31 (Reuters) - For global consumers now on high alert over a rogue strain of genetically modified wheat found in Oregon, the question is simple: How could this happen? For a cadre of critics of biotech crops, the question is different: How could it not?

The questions arose after the U.S. Department of Agriculture announced Wednesday that it was investigating the mysterious appearance of experimental, unapproved genetically engineered wheat plants on a farm in Oregon. The wheat was developed years ago by Monsanto Co to tolerate its Roundup herbicide, but the world's largest seed company scrapped the project and ended all field trials in 2004.

The incident joins a score of episodes in which biotech crops have eluded efforts to segregate them from conventional varieties. But it marks the first time that a test strain of wheat, which has no genetically modified varieties on the market, has escaped the protocols set up by U.S. regulators to control it.

"These requirements are leaky and there is just no doubt about that. There is a fundamental problem with the system," said Doug Gurian-Sherman, a scientist at the Union of Concerned Scientists who served on a biotech advisory subcommittee for the Food and Drug Administration from 2002 to 2005.

The discovery instantly roiled export markets, with Japan canceling a major shipment of wheat, a quick reminder of what is at stake - an $8 billion U.S. wheat export business.

Many fear the wheat most likely has been mixed in with conventional wheat for some time, but there are no valid commercial tests to verify whether wheat contains the biotech Roundup Ready gene.

"A lot of people are on high alert now," said Mike Flowers, a cereal specialist at Oregon State University. "We can't really say if it is or isn't in other fields. We don't know."

A month has passed since U.S. authorities first were alerted to the suspect plants in Oregon, yet it remains unclear how the strain developed. Monsanto officials said it is likely the presence of the Roundup Ready genetic trait in wheat supplies is "very limited." The company is conducting "a rigorous investigation" to find out how much, if any, wheat has been contaminated by their biotech variety. U.S. regulators are also investigating.

Bob Zemetra, one of the Oregon State University wheat researchers who first tested the mystery wheat when an unnamed farmer mailed a plant sample, said there is no easy way to explain the sudden appearance of the strain years after field tests ended.

Cross-pollination seems unlikely, Zemetra said, because the field where the plants were discovered was growing winter wheat, while Monsanto had field tested spring wheat. There hadn't been any test sites in the area since at least 2004, making it unlikely the new genetic strain would have been carried on the wind.

"I don't know that we are ever going to get a straight answer, or a satisfactory answer, on how it got there," Zemetra said.

'RIGOROUS TESTING PROTOCOL'

Government records show Monsanto conducted at least 279 field tests of herbicide-resistant wheat on over 4,000 acres in at least 16 states from 1994 until the company abandoned its field testing of wheat in 2004.

Zemetra participated in Monsanto wheat trials a decade ago, while working as a wheat breeder at the University of Idaho. When Monsanto decided to halt the testing, he said, the company had strict rules about handling test materials.

"Pretty much all that seed, and any program that was using it, either buried it, burned it or shipped it back to Monsanto, as part of the instructions for doing the field testing," he said. "It was a very rigorous testing protocol."

Researchers were requested to watch the plots for "volunteer" growth for at least two years after conclusion of the tests, Zemetra added.

Zemetra first became aware of the wheat found in Oregon when a farmer brought in what he described as several isolated wheat plants that had emerged after he sprayed Roundup on a fallow field in eastern Oregon. The farmer had last harvested a crop of white winter wheat from the field in 2012.

A report by the U.S. Government Accountability Office in 2008 highlighted several gaps in regulations designed to prevent genetically altered crops from escaping test plots.

The report's conclusions were based on USDA data that there were 712 violations of its regulations from 2003 to 2007, including 98 that could lead to a possible release of unauthorized crops.

The GAO study said the USDA lacked the resources to conduct routine testing on areas adjacent to the GMO crops. Instead, the report found, the government relied on biotechnology companies to voluntarily provide test results.

A 2005 report by the Office of Inspector General for the USDA was critical of government oversight of field tests of GMO crops. The report said there was a risk "that regulated genetically engineered organisms... will inadvertently persist in the environment before they are deemed safe to grow without regulation."

While the reports noted problems with government oversight, USDA itself lists 21 "major incidents of noncompliance" from 1995 through 2011. Five of those involved Monsanto and included a failure by the company to properly monitor test fields, a failure to follow certain test planting protocols and a failure to properly notify regulators about test activities.

'CAN'T GET RID OF IT'

Developers of biotech crops say testing shows they are safe for humans, animals and the environment, and farmers like Roundup Ready corn, soybeans and other crops because genetic alterations enable them to survive dousings of the herbicide.

But critics of the so-called "Franken foods" point to scientific studies that claim links to health problems, while raising other environmental concerns connected to biotech crops that require close scrutiny.

Many international buyers will not accept genetically modified grain, and several U.S. food companies also reject GMOs. When Monsanto in 2004 shelved its Roundup Ready wheat research, the move came amid a backlash from foreign buyers who said they would reject U.S. wheat if DNA-altered wheat was commercialized.

Still, Alan Tracy, president of U.S. Wheat Associates, said despite the contamination problem, the wheat industry was supportive of continued research into biotech traits for wheat.

Farmers are planting less wheat and more of other crops that have been genetically altered in ways that can help farmers grow more grain, Tracy said.

"Our industry remains strongly supportive of continued research and development of biotech traits for wheat," he said.

But finding ways for conventional grain and biotech grain to co-exist will continue to fall short if regulators don't force crop developers to contain their products, critics said.

"This whole idea of co-existence, that has been the No. 1 theme  at USDA. But you can't have co-existence when you can't control contamination," said Andrew Kimbrell, executive director at the Center for Food Safety, which has sued the U.S. Department of Agriculture to try to force tighter regulation of genetically modified crops.

In the meantime, the search is on for the source of the mystery wheat.

Jim Shroyer, a wheat agronomy expert at Kansas State University, said it was likely the Roundup Ready wheat has grown for years in eastern Oregon only to be discovered recently.

"Probably what happened is it got mixed in with a farmer's field eight years ago and has been there ever since," Shroyer said. "That is the main reason we here in the top wheat state did not want Roundup Ready. You can't get rid of it.

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Reuters: Regulatory News: BRIEF-Janssen says received European commission approval for hepatitis C drug Incivo

Reuters: Regulatory News
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BRIEF-Janssen says received European commission approval for hepatitis C drug Incivo
May 31st 2013, 08:36

LONDON | Fri May 31, 2013 4:36am EDT

LONDON May 31 (Reuters) - Johnson & Johnson : * Janssen - incivo gets European commission approval for twice daily dosing for

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Reuters: Regulatory News: EU agency calls for curbs on GSK, Valeant epilepsy drug

Reuters: Regulatory News
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EU agency calls for curbs on GSK, Valeant epilepsy drug
May 31st 2013, 09:44

LONDON | Fri May 31, 2013 5:44am EDT

LONDON May 31 (Reuters) - Use of an epilepsy drug developed by GlaxoSmithKline and Valeant Pharmaceuticals should be restricted to patients for whom other anti-epileptic medicines have proved inadequate or not tolerated, EU regulators said on Friday.

The European Medicines Agency said the move followed cases of abnormal colouring of the skin, nails, lips and eye tissues, including the retina, in some patients who took Trobalt.

It recommended a comprehensive eye examination should be performed at the start of treatment and at least every six months during treatment. Among 55 patients receiving Trobalt in long-term studies examined so far, 15 had retinal pigmentation, the agency added.

Abnormal colouring of the retina can result in impaired vision.

The Food and Drug Administration issued a similar warning about the drug - which is sold in the United States as Potiga - last month.

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Reuters: Regulatory News: EUROPE'S PULSE-A daily note from our Economics Editor

Reuters: Regulatory News
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EUROPE'S PULSE-A daily note from our Economics Editor
May 31st 2013, 06:55

Fri May 31, 2013 2:55am EDT

May 31 (Reuters) - Euro zone unemployment figures will emphasize just how far the currency bloc is from recovery while inflation data due at the same time could push the European Central Bank closer to new action. If price pressures drop further below the target of close to but below two percent we're moving into territory where the ECB has a clear mandate to act, although the consensus forecast is for the rate to push up to 1.4 percent, from 1.2 in April.

Market attention is focused on the ECB cutting its deposit rate - the rate banks get for parking funds at the ECB - into negative territory to try and get them to lend. But will that do much?

Despite being in a world awash with central bank money, the fact safe haven bond markets such as Bunds and U.S. Treasuries haven't sold off much - and are now starting to climb after Ben Bernanke's hint that the Federal Reserve could soon start slowing its money-printing programme -- denotes ongoing nervousness among banks and investors. Data this week showed bank loans to the euro zone's private sector contracted for the 12th month in a row in April.

Despite the (now waning?) European market euphoria - started by the ECB's pledge to do whatever it takes to save the euro and given a further shot in the arm by Japan's dash for growth - the economic numbers look grim. Euro zone unemployment is forecast to edge up to 12.2 percent of the workforce.

Last night, official data showed French unemployment hit a new record. Consumer spending, just out, dropped 0.3 percent in April.

Germany is in better shape but even it will barely eke out any growth this year. Retail sales posted a 0.4 percent fall in April. Britain, however, could just be starting to turn a corner. It skirted a return to recession in the first quarter and the Bank of England has signalled modestly better times ahead. The UK GfK consumer confidence hit a six-month high in May, while the British Chambers of Commerce revised up its growth forecasts for the first time since the financial crisis.

French President Francois Hollande takes to the television airwaves this afternoon, a day after he met Germany's Angela Merkel, a meeting which laid bare Berlin's alarm at the sluggish pace of French reform and the Elysee's irritation at Brussels telling it what to do - not on the face of it a recipe for smooth progress.

Hollande pledged to meet his target of balancing the structural budget in 2017 but said it was up to him, not the Commission, how to get there. Merkel said the two extra years Paris has been given to meet its debt-cutting target had to go "hand in hand" with structural change. In France's case, that means relaxing labour laws and overhauling the pensions system first and foremost. Back in Berlin, some of Merkel's acolytes were much more blunt about perceived French shortcomings.

Where the two leaders did agree was on the need for a full-time president of the euro zone finance ministers' forum and more frequent summits to coordinate economic policy, as well as the need to shell out 6 billion euros in EU funds to fight youth unemployment. That will feed into next month's EU summit. The thrust for greater integration is alive and well but not necessarily in crucial areas such as banking union of which there was barely a mention.

Italy was taken off the EU's debt warning list this week but will need more slack than that if tax cuts being argued over within a fractious coalition government are to be delivered. EU Council President Herman Van Rompuy meets President Giorgio Napolitano and Prime Minister Enrico Letta in Rome later. The Commission forecasts Italy's budget deficit at 2.9 percent of GDP this year, just a fraction below the 3 percent ceiling, offering no room for manoeuvre unless rules are changed to allow Rome to exclude some new spending from its deficit calculations.

Greek sentiment appears to be picking up but the bald numbers suggest it is unlikely to get back on its feet without a further debt writedown at some point, which this time will mean a hit for fellow euro zone governments (i.e. taxpayers). Dutch Finance Minister Jeroen Dijsselbloem, who chairs the meetings of euro zone finance ministers, is due in Athens for talks with the finance minister and Prime Minister Antonis Samaras.

German Bund futures have edged up at the open. European stock futures are pretty flat. Nine days on, Bernanke's QE comment continues to cast a pall. Since then, peripheral euro zone bond yields have started creeping up and the index of top European shares has shed about 2.5 percent.

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Reuters: Regulatory News: EU mergers and takeovers (May 31)

Reuters: Regulatory News
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EU mergers and takeovers (May 31)
May 31st 2013, 10:31

BRUSSELS | Fri May 31, 2013 6:31am EDT

BRUSSELS May 31 (Reuters) - The following are mergers under review by the European Commission and a brief guide to the EU merger process:

APPROVALS AND WITHDRAWALS

None

NEW LISTINGS

-- U.S. food and grain-handling companies ConAgra Foods , Cargill and CHS to combine their North American flour milling businesses to be called Ardent Mills (notified May 28/deadline July 2/simplified)

EXTENSIONS AND OTHER CHANGES

None

FIRST-STAGE REVIEWS BY DEADLINE

MAY 31

-- Canada Life, which is a subsidiary of Canadian life insurer Great-West Lifeco, to acquire Irish Life (notified April 22/deadline May 31)

JUNE 4

-- Brazilian investment fund 3G Capital, and Berkshire Hathaway to acquire joint control of U.S. ketchup maker H.J. Heinz Co (notified April 24/deadline June 4)

-- Syral China Investment, which is part of Tereos International, and Wilmar China New Investments, which is a unit of the Wilmar group, to acquire joint control of Liaoning Jinxin Biology & Chemistry which is now solely owned by Wilmar (April 24/deadline June 4/simplified)

JUNE 6

-- Swiss chocolate maker Barry Callebaut to buy the cocoa business of Singaporean group Petra Foods (notified April 26/deadline June 6)

-- Austrian chemical company Borealis to buy French oil giant Total's GPN fertiliser business and a majority stake in Belgium-based Rosier (notified April 26/deadline June 6)

JUNE 7

-- Russian dairy producer OJSC Unimilk Co, which is controlled by French food group Danone Group, and French logistics company NDL International, which is controlled by French transport group Norbert Dentressangle, to form a logistics joint venture (notified April 29/deadline June 7/simplified)

-- Dutch staffing company Randstad to acquire some of Dutch peer USG People NV's assets (notified April 29/deadline June 7)

-- Private equity firms Lion Capital and Avedon Capital Partners to acquire joint control of Dutch snack producer AD Van Geloven Holding (notified April 29/deadline June 7/simplified)

JUNE 11

-- Qatar Investment Authority and Qatar state-owned hotel group Kingdom Holding Company to acquire joint control of FRHI Holdings which owns hotels in Paris and Singapore (notified May 2/deadline June 11/simplified)

-- Private equity investor Nordic Capital to buy Unicorn which owns marine transport services company Unifeeder A/S (notified May 2/deadline June 11/simplified)

-- Private equity firm KKR to acquire indirect control of French clothing retailer SMCP (notified May 2/deadline June 11/simplified)

-- French construction group Vinci to buy Portuguese airports operator Aeroportos de Portugal (ANA) (notified May 2/deadline June 11)

JUNE 14

-- Diversified U.S. manufacturer Honeywell International Inc. to acquire mobile computing device maker Intermec For $600 million (notified Feb. 15/deadline June 14)

JUNE 17

-- U.S. media group Time Warner to acquire sole control of TV operator Central European Media Enterprises in which it currently holds a stake (notified May 8/deadline June 17)

-- Private equity firm CVC to acquire sole control of German energy services company ista GmbH (notified May 8/deadline June 17/simplified)

JUNE 18

-- U.S. group General Electric Co to buy the aviation business of Italian plane components maker Avio from private equity fund Cinven and Italian defence group Finmeccanica (notified May 13/deadline June 18)

JUNE 19

-- U.S. technology services company IBM's Italian unit to acquire a new company set up from a business owned by Unicredit Business Integrated Solutions S.c.p.a, part of Italian bank UniCredit S.p.A. (notified May 14/deadline June 19)

-- German investor Joh A Benckiser (JAB) to buy Dutch coffee and tea maker D.E. Master Blenders 1753 (notified May 14/deadline June 19/simplified)

JUNE 20

-- U.S. carrier Delta Air Lines to buy a 49 percent stake in British peer Virgin Atlantic (notified May 15/deadline June 20)

-- Dell Chief Executive Michael Dell and private equity firm Silver Lake Partners to buy out personal computer maker Dell Inc (notified May 15/deadline June 20)

JUNE 24

-- U.S. derivatives and exchange and clearinghouse operator IntercontinentalExchange Inc to buy New York Stock Exchange operator NYSE Euronext (notified May 17/deadline June 24)

-- Private equity firm Triton to buy recycling company Befesa from Spanish renewable energy and infrastructure company Abengoa (notified May 17/deadline June 24/simplified)

JUNE 26

-- Spanish book retailer Circulo, which is a joint venture between German media group Bertelsmann and Spanish company Planeta, to acquire joint control of its wholly-owned subsidiary book seller Yadican together with Spanish telecoms operator Telefonica (notified May 22/deadline June 26/simplified)

JUNE 27

-- Trading house Argos to buy French energy product retailer Etablissements Joseph Wallach S.A.S (notified May 23/deadline June 27)

-- Energy trading house Argos Group Holding B.V. to buy French petrol product retailer Etablissements Joseph Wallach S.A.S. (notified May 23/deadline June 27)

JUNE 28

-- Fonds Stratsgique d'Investissement S.A., which is controlled by French investment fund Caisse des Depots et Consignations, to acquire joint control of shipping services provider CMA CGM together with industrial group Yildirim Holding A.S. and holding company Merit Corporation (notified May 24/deadline June 28)

-- Private equity firms Bain Capital and Golden Gate Capital to acquire joint control of U.S. business software maker BMC Software Inc (notified May 24/deadline June 28/simplified)

-- Investment bank Goldman Sachs and financial services company Thomas H. Lee Partners to acquire joint control of processed food producer CTI Foods (notified May 24/deadline June 28/simplified)

-- Yamaha Motor Co Ltd and Kayaba Industry Ltd to set up a joint venture in Japan to make motorcycle suspension systems (notified May 24/deadline June 28/simplified)

JULY 2

-- Giant U.S. food and grain-handling companies ConAgra Foods Inc, Cargill and CHS Inc to combine their North American flour milling businesses into a new venture Ardent Mills, that would control more than a third of U.S. capacity (notified May 28/deadline July 2/simplified)

-- French private equity firm PAI Partners to buy R&R Ice Cream from rival Oaktree Capital (notified May 28/deadline July 2/simplified)

SEPT 3

-- Greek carrier Aegean Airlines to buy Olympic Air (notified Feb. 28/deadline extended for the second time to Sept. 3 from April 23 after the Commission opened an in-depth investigation)

SEPT 6

-- Swedish refiner Nynas to purchase certain assets from Royal Dutch Shell's Harburg refinery (notified Feb. 19/deadline extended for the second time to Sept. 6 from Aug. 8)

GUIDE TO EU MERGER PROCESS

DEADLINES:

The European Commission has 25 working days after a deal is filed for a first-stage review. It may extend that by 10 working days to 35 working days, to consider either a company's proposed remedies or an EU member state's request to handle the case.

Most mergers win approval but occasionally the Commission opens a detailed second-stage investigation for up to 90 additional working days, which it may extend to 105 working days.

SIMPLIFIED:

Under the simplified procedure, the Commission announces the clearance of uncontroversial first-stage mergers without giving any reason for its decision. Cases may be reclassified as non-simplified -- that is, ordinary first-stage reviews -- until they are approved.

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Reuters: Regulatory News: US power regulator's JPMorgan case could be on summer simmer

Reuters: Regulatory News
Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com
US power regulator's JPMorgan case could be on summer simmer
May 31st 2013, 10:59

By Patrick Rucker and Scott DiSavino

WASHINGTON/NEW YORK | Fri May 31, 2013 6:59am EDT

WASHINGTON/NEW YORK May 31 (Reuters) - Even before the chief U.S. power market regulator announced his resignation this week, the agency pursuing a contested probe against JPMorgan Chase & Co for alleged market manipulation had good reason to take its time building the case.

The bank, already embroiled in a public legal battle with the Federal Energy Regulatory Commission (FERC) over disclosing certain emails, alerted investors earlier this month that it expected FERC to move against the bank for trading activities in electricity markets. That followed the leak of FERC's initial findings, raising expectations of near-term action.

Yet former officials and legal experts say recent events could give FERC cause to build its case for several more months, taking time to evaluate the legal scope of its oversight after an unexpected set-back in court and to consider the next step in a high-profile case against Barclays that has gone quiet.

And now, to await the replacement for its chairman, who will step down after a period of unprecedented action.

Chairman Jon Wellinghoff, who joined the commission in 2006 just a year after Congress vastly expanded FERC's powers to pursue market manipulation after the Enron scandal, confirmed his resignation from the post on Wednesday. He will remain in the position until a replacement is confirmed.

While much of the enforcement work has fallen to former U.S. Attorney Norman Bay, Wellinghoff's leadership since 2009 has coincided with a series of high-profile actions and settlements against big powers in the electricity market.

"Unless you're facing irreparable loss, there is no need to hurry," said Susan Court, FERC's director of enforcement from 2005 through 2009.

TIME TO SETTLE?

The case is one of several major FERC enquiries that have unnerved the U.S. power market, and added to a handful of regulatory woes facing JPMorgan Chief Executive Jamie Dimon. Critics say the agency is overreaching; FERC officials say they are simply cracking down on market malfeasance.

At the same time, political pressure is mounting: Michigan Congressman Dan Kildee, a Democrat who sits on the Committee on Financial Services, this week called on the Department of Justice to investigate the bank's power trading in Michigan.

JPMorgan has acknowledged the probe, but says it "strongly disagrees" with the FERC conclusions and insists that it acted properly in all trades. A representative of the bank declined any further comment this week on the possible timing of FERC action.

While the bank has said it is readying for a long fight, a slower approach from FERC could allow for more time to coax the bank toward settlement talks - and spare one if its top executives, commodities chief Blythe Masters, public scrutiny.

"The more complicated cases do tend to take longer to work out and it is also a fact that most cases do settle," says former commissioner Marc Spitzer, who is now a partner at the law firm of Steptoe and Johnson LLP in Washington.

RULINGS CLUTTER

In mid-March, a federal court ruled that FERC overstepped its authority when it fined Brian Hunter of Amaranth Advisors LLC $30 million for the $6 billion in bad bets he booked on natural gas futures that precipitated the firm's collapse.

The court found that FERC's punishment was out of bounds since Hunter made bets on natural gas futures - the domain of the Commodity Futures Trading Commission (CFTC).

Weeks later, a further complication: the CFTC agreed to hand FERC most of its authority over the power market, but retained some jurisdiction over power trades on an "as-needed basis". (Press release: link.reuters.com/zyv38t)

"If I were FERC, I would want to make sure I'd settled this question of authority before going too far with these cases," said Suedeen Kelly, head of the energy regulatory practice at Akin Gump in Washington, who served more than six years as a FERC commissioner.

That ruling may have been particularly vexing for its case against British bank Barclays Plc, which is based on trading activity in both physical and derivative markets.

After issuing a recommendation last October to fine Barclays $470 million for manipulating the California power market from late 2006 to 2008, the case has yet to move forward to a formal vote by commissioners. FERC declined to comment on its status.

The case against JPMorgan is not as advanced. First, FERC staff still need to issue the "show cause" order, bringing the case against the bank - and Masters - into full public view.

"Don't discount the personalities in something like this," said Court, who advises on energy matters as SJC Energy Consultants. "Defending your reputation is part of the negotiation."

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