Media Quote David Applebaum on FERC Settlement with Barclays
David Applebaum, co-head of the energy regulation, markets and enforcement practice at Akin Gump, has been quoted in the Bloomberg article “Barclays Fine Slashed in U.S. Settlement on Power Manipulation,” regarding a settlement between the Federal Energy Regulatory Commission (FERC) and Barclays over claims that the bank manipulated western U.S. electricity markets from 2006-2008. The article reports that Barclays will pay $105 million instead of a previously imposed fine of $470 million.
One of the traders at Barclays at the time was successful in having his personal fine of $1 million dismissed when a judge agreed that FERC waited too long to bring its case against him. Applebaum said that was a big factor in the reduction of the penalty against the bank.
“I think once the Smith decision came out, it was inevitable that FERC would have to reduce its damages and civil penalties significantly,” said Applebaum, who previously served as director of investigations with the commission’s office of enforcement team.
Speaking to Inside FERC for the article “$105 million settlement ends long-running Barclays market manipulation case,” Applebaum expanded on why the penalty was reduced, saying it is likely due to “the recent adverse ruling from the court on statute of limitations grounds. That ruling … indicated that, in the court’s view, a significant portion of the time period included within FERC’s case against Barclays itself was time-barred — which necessarily meant that penalties associated with that time period would be barred as well.”
Applebaum added that he finds it significant “that FERC’s largest outstanding, and longest running, market manipulation case in federal court and before the commission has now come to a close.”