Amaranth Advisors, the fund that had a spectacular collapse last year after losing approximately $6 billion on speculative natural gas bets, lost a motion in U.S. District Court late last week. Amaranth is being prosecuted by the Federal Energy Regulatory Commission on charges of manipulating the natural gas markets. Amaranth sought an injunction against FERC, arguing in part that the Commodities Futures Trading Commission already had commenced a similar action for price manipulation.
Judge Denny Chin denied Amaranth’s motion. The judge did urge the agencies to cooperate in their efforts, but said that he lacked jurisdiction to enjoin FERC from proceeding, potentially subjecting the embattled fund to multiple prosecutions.
Read the full Reuters article here.