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]
Posted by BSD, May 09, 2007 4:09PM
Gangsta to the very end, motherfuckers.