Thursday, 21 August 2014
Last updated 7 hours ago
Dec 6 2012 | 9:16am ET
JPMorgan Chase is off the hook—again—in the Amaranth Advisors collapse.
The defunct hedge fund, which collapsed six years ago after losing $6 billion on natural gas trades, had accused the bank of defamation, alleging it sabotaged and thwarted Amaranth's deal to sell most of its portfolio to Citadel Investment Group. The hedge fund said that JPMorgan warned Citadel that "Amaranth is not as solvent as they are telling you they are," and then took over the portfolio alongside Citadel.
Unfortunately for Amaranth, a New York State appeals court ruled, it was not as solvent as it said.
JPMorgan's statement was "not defamatory, as it simply expresses an opinion based on information available to all potential parties to the potential fund transaction," the court said. "Furthermore, the statement is substantially true, as there is uncontroverted evidence that JPMC did consider, if only briefly, making a bridge loan to the fund and concluded that it was 'less than creditworthy' and a 'potential preference risk.'"
Amaranth had been seeking to revive the suit, which was dismissed last year by a lower court.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note