Wednesday, September 27, 2006

Amaranth update

Interesting. Things could have been worse. U.S.: "The New York Mercantile Exchange told Amaranth Advisors LLC that the hedge fund's natural gas bets were too big a month before the trades led to a $6 billion loss, said two people with knowledge of the meeting.

Amaranth unwound some of its natural gas positions after the warnings, according to the people, who asked not to be named because the communications were confidential."

Also from the same Bloomberg story:
First the predictable politcal intervention:
"Members of Congress .... want greater authority for the Commodity Futures Trading Commission to monitor energy trading, especially on the all-electronic Intercontinental Exchange Inc.

And then an update on Brian Hunter the Amaranth trader responsible fo "the biggest-ever hedge fund loss" "no longer works at Amaranth, the Financial Times reported earlier today, citing unidentified people close to the matter.""

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