Amaranth’s No Good, Very Bad Day Week Month Year

By Bess Levin

FINalternatives said it best: “Just because you’re in the process of shutting down after losing $6.5 billion doesn’t mean the Feds will cut you a break when it comes to naked short-selling.”
Amaranth Advisors has agreed to pay $716,819 to the SEC to settle charges that it shorted five stocks before their secondary offerings, and then covered the sales with the securities bought in those offerings. Amaranth didn’t admit or deny the charges, an in a letter to its investors, noted that the naked shorts had nothing to do with the meltdown last September, which result from bad natural gas trades and a lack of bad weather.
Wrote founder Nick Maounis, “The trades that are the subject of the settlement represent a variety of trading errors or misunderstandings of the application of the rule.”
Amaranth settles short-selling case with US SEC [Reuters]
Amaranth Hit For Naked Shorts [FINalternatives]

Comments (5)

  1. 1
    Posted by BSD | May 9, 2007 at 4:09 PM

    Gangsta to the very end, motherfuckers.

  2. 2
    Posted by AJ | May 9, 2007 at 5:09 PM

    They’re trying pretty hard to make sure anyone who hasn’t already been able to get their money out won’t receive a dime

  3. 3
    Posted by MSM Hack | May 9, 2007 at 5:42 PM

    What? No fish picture? I love the fucking fish picture.

  4. 4
    Posted by longjohnson | May 15, 2007 at 11:01 AM

    anything and anyone coming out of this pathetic shop are the lowest level of human existence.

  5. 5
    Posted by Zbignew | May 15, 2007 at 11:09 AM

    Seconded on the fish picture. It’s iconic.

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