BP oil spill settlement is in was sunk.

Look under rocks, and're likely to find worms. Dig in a multibillion-dollar legislation, and discover probably financial shenanigans. This proves the BP claims chaos in the Gulf of Mexico.

Quick review: as I cover storyreported in a current Bloomberg BusinessWeek-, process the deals 2010 spill Gulf after BP (BP) dough led demands to some pretty far-fetched to oil company. BP, more than 25 billion $ in compensation claims and cleanup costs already paid has, the presiding Federal Judge Carl Barbier of New Orleans asked to intervene. He refused, but appointed in early July by former FBI Director Louis Freeh, to investigate. The next day I predicted , based on my brief encounter with the court documents, Freeh had his big day.

BP now has a renewed request that Barber temporarily from the process due to fresh allegations of fraud. First the company points out, that two private lawyers for the claims facility - worked assessment cases controversial, while their own firms trying represent money BP plaintiffs. If true, that sounds pretty obvious conflict of interest, indicating lax management over the claims.

Secondly, BP says in its new dishes, submission, that two other employees in a claims Office in mobile, Alabama, due to allegations has been exposed that one half of them related and other people to excessive receive payments in return for kickbacks. This revelation follows the earlier suspension of two senior lawyers who work for the operation of claims in New Orleans to Kickback allegations. This bottle clear Red increasingly apparently without effort by Freeh. Sure it's got the advantage of BP lawyer alarming evidence turns just by cross indexing partnerships and by operating a fraud tip line.

The striking of this situation is it is as unnecessary. BP has acknowledged misconduct in connection with the oil spill and opened a company in the course of an industrial disaster the spigot of money, that is, what are we to do. Plaintiff lawyers stand hundreds of millions of dollars for their trouble making, but that was apparently not enough. Coat Don overreaching gave BP the chance of the victim. This additional years of litigation and lengthy distraction from what ever ecological and economic consequences in the Gulf region deserves attention.

And now, a former FBI Director over rocks, who knows is what he will find, wiggle?

Barrett, an Assistant Managing Editor and senior writer at Bloomberg BusinessWeek, is working on a book about the Chevron oil pollution case in Ecuador, which is scheduled for publication by Crown in 2014. His latest book is called GLOCK: the rise of America's gun.

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JPMorgan's $410 million FERC settlement: Dimon waved the white flag is?

There are several ways to read by JPMorgan Chase (JPM) $410 million-trade manipulation settlement with the Federal Energy Regulatory Commission.

First, the background: the largest U.S. Bank agreed to pay a penalty of $285 million and $125 millions a secret profits to current taxpayers in California and returning to the FERC in the Midwest. The deal by a foreign federal investigation of efforts to the electricity markets raises game a component. JPMorgan also agreed waiver on $200 million in claims against the California e network operators, so you could say that the settlement costs totaling more than $600 million, leading him to one of the largest of its kind. As is the practice with such schemes, the Bank does not admit any wrongdoing. JPMorgan spokesman Brian Marchiony offered the standard comment: "We are pleased to have this matter behind us."

What does that mean? A plausible interpretation emphasizes JPMorgans undeniable black eye. Finally to the hundreds of millions of dollars, Federal accusations ribs MOM power customers solve numbers? Our cousins at Bloomberg News take this view:

The case is another setback for JPMorgan, which sailed through the financial crisis of 2008 without a single quarterly loss. Last year JPMorgan lost more than 6.2 billion $ from wrong derivatives bets by traders in London. The incident prompted an investigation of the U.S. Senate, the departure of two senior executives and a debate over whether CEO Jamie Dimon, 57, its role should be Chairman. Re-elected by shareholders as Chairman in May.

Something else, if not contradictory are one, take the settlement news underlines this last set of Bloomberg: survives - handy, as it happens - Dimon and JPMorgan is methodically working its way through a thicket of legal issues. The Bank in this interpretation is on the whole to the Federal Government signaled that it wants peace, not war, and is willing to withdraw, to achieve his goal. Evidence for this analysis appeared on July 26 at the JPMorgan have let it be known that she was considering, sale or spin-off of business were real, including energy trading. This announcement came after only three days looked a congressional hearing whether big banks, owned by metals and other commodities to manipulate markets with the effect of drive the prices on items how to use soda and beer cans. In this view Dimon tried tried, regulators, their multi-front offensive blow off to convince a classic white-flag strategy.

Regardless of which read you would prefer, a big question remains as regards lead JPMorgan: the Bank's operations and one of the highest profile women on Wall Street were what happens with Blythe masters, head of global? They monitored the unit in the FERC settlement involved. They monitored the agricultural products and metals operations that JPMorgan has said that it is clear. The Bank proposes to masters as well as outsource?

To be clear: while FERC holds responsible investigators initially named "Master", and several from your dealer as personally not them individually guilty for a variety of fraudulent power scheme, the settlement itself. All individuals have denied wrongdoing. JP Morgan decided 44 stand behind champion. She worked for the Bank in London in 1987, before even the University, she attended. She rose quickly: 1990s lived in the them a hand in the development and marketing of credit derivatives, which some critics blamed for helping cause the Wall Street crash of 2008. Over the years served as a public face of JPMorgan and the industry at large. She has forged close ties with Dimon.

Yet intense controversy has swirled lately around them. That makes it logical to questions whether the resolution of the FERC investigation opportunity Dimon a conciliatory signal to Washington in the form of the exit its commodities Chief send created.

Barrett, an Assistant Managing Editor and senior writer at Bloomberg BusinessWeek, is working on a book about the Chevron oil pollution case in Ecuador, which is scheduled for publication by Crown in 2014. His latest book is called GLOCK: the rise of America's gun.

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