Amaranth Bid To Stop FERC Lawsuit Fails

Nov 2 2007 | 11:46am ET

A federal judge yesterday denied an effort by collapsed hedge fund Amaranth Advisors to get one regulator off its back, but cautioned that agency that it would be “prudent” to back off.

U.S. District Judge Denny Chin in Manhattan denied Greenwich, Conn.-based Amaranth’s motion for a preliminary injunction against the Federal Energy Regulatory Commission. FERC charged that Amaranth, which blew up spectacularly last year, losing about $6 billion on bad natural gas trades, with market manipulation of those very same natural gas markets. The Commodity Futures Trading Commission has also charged Amaranth with market manipulation, based on substantially the same trades and evidence.

Judge Chin said he denied the motion because he lacked jurisdiction and because Amaranth had not met the requirements for an injunction. But he added that the agencies should “coordinate their efforts, at least to some degree.”

“I agree that it would be prudent for FERC to defer this lawsuit,” he wrote.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note