BUSINESS
09/15/2013 10:40 am ET

JPMorgan, Other Wall Street Institutions Exploit Ethanol Credits

People walk by JP Morgan Chase & Company headquarters in New York, August 14, 2013. The US August 14, 2013 charged a pair of
People walk by JP Morgan Chase & Company headquarters in New York, August 14, 2013. The US August 14, 2013 charged a pair of former JPMorgan Chase traders with fraud in connection with the 2012 $6.2 billion 'London whale' trading losses. Federal prosecutors filed criminal charges against Javier Martin-Artajo and Julien Grout, alleging the two men kept false records on the trades, committed wire fraud and submitted false US securities filings. AFP PHOTO/Emmanuel Dunand (Photo credit should read EMMANUEL DUNAND/AFP/Getty Images)

It was supposed to help clean the air, reduce dependence on foreign oil and bolster agriculture. But a little known market in ethanol credits has also become a hot new game on Wall Street.

The federal government created the market in special credits tied to ethanol eight years ago when it required refiners to mix ethanol into gasoline or buy credits from companies that do so. The idea was to push refiners to use the cleaner, renewable fuel, or force them to buy the credits.

Read more on The New York Times

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