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

Delayed Flash Crash Arrest Highlights Difficulties Detecting Fraud

Apr 23 2015 | 7:19am ET

The five years it took regulators to bring high-profile charges against a UK trader...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note