A few years back, a hedge fund in Greenwich went out of business. Perhaps you’ve heard of it. Was called Amaranth Advisors. Was run by a guy named Nick Maounis. Had this lovable goof of a Canuck named Brian Hunter making natural-gas trades. Brian was always up for a good laugh and one day, on a lark, put on some trades that resulted in the firm losing, I don’t know, like $6.6 billion. It’s was hilarious! Maybe you had to be there, but I’m telling you, it was pant-pissingly funny. Definitely one of the best things to happen to the hedge fund community in a while.
Anyway, Maounis went on to start a new fund called Verition with most of the gang from the old shop, except for Hunter, who did some work for Peak Ridge Capital and also spent the last few years unsuccessfully fighting fighting what he believed was a bum rap re: market manipulation (on good, non-firm-destroying trades).
The US Federal Energy Regulatory Commission Thursday fined former Amaranth Advisors natural gas trader Brian Hunter $30 million — the highest penalty ever assessed by the agency — for what it said was his manipulation of the natural gas market in 2006. The agency imposed the fine after it agreed with the findings of an FERC administrative law judge, who ruled that Hunter artificially manipulated the closing prices of the NYMEX March, April and May 2006 gas futures contract to benefit offsetting positions he held on the IntercontinentalExchange. Hunter, who has maintained his innocence, was not immediately available for comment and was not at the proceeding.
This is the first time that the federal agency, which oversees the often mundane details of trading and pricing of electricity and natural gas, has taken a market-manipulation case before an administrative judge. In a statement, FERC said it found that “Hunter sold significant numbers of futures contracts” at times when the market was vulnerable to big price swings “with the intent to depress prices and financially benefit his significant derivative positions held on other platforms.” Susan Court, a lawyer who brought the case against Hunter when she led FERC’s Director of Enforcement and is now in private practice, called the
commission’s unanimous approval of the Hunter findings “huge,” adding “that litigation sets a precedent” that negotiated settlements cannot. She said the $30 million fine “will definitely get the attention of natural gas and electricity traders.”
US FERC fines former Amaranth gas trader Brian Hunter $30 million [Platt's]
I told Nick I held nat gas in my p.a. before I bought it for the fund.
–Brian
This guy is a little bitch compared to me
-Lou Pai
Bess, any relation?
Gotta agree that Hunter’s trade was pretty damn funny. Paid for my own private island and a spare G5 with that one.
- J. Arnold
NO FISH PICTURE?
On the off chance I am ever fined $30 million by a government other than my own, I’m going to go ahead and never return to that country.
Ditto for a government that is my own.
Greetings from Mallorca…
On the off chance I am ever fined $30 million by a government other than my own, I’m going to go ahead and never return to that country.
Ditto for a government that is my own.
Greetings from Mallorca…
The really funny part is that the trades he’s getting fined for are not the trades that blew up Amaranth
The really funny part is that the trades he’s getting fined for are not the trades that blew up Amaranth
If dumb natural gas trading was a crime they’d have to build a lot more jails in Houston and Tulsa.
If dumb natural gas trading was a crime they’d have to build a lot more jails in Houston and Tulsa.
How is Verition still in business?
Who would invest in that Maounis sheit even if they got blown by the IR bunnies…
How is Verition still in business?
Who would invest in that Maounis sheit even if they got blown by the IR bunnies…
fuck canada, thats not even real bacon
fuck canada, thats not even real bacon
Canadian guy is chauffeured to my shop in a Bentley and brings in a “black box” that he says can make billions of dollars trading the March/April natural gas spread! If this checks out I’ve just got to have it!!
-Rick Harrison
“Pawn Stars”
Las Vegas, NV
Canadian guy is chauffeured to my shop in a Bentley and brings in a “black box” that he says can make billions of dollars trading the March/April natural gas spread! If this checks out I’ve just got to have it!!
-Rick Harrison
“Pawn Stars”
Las Vegas, NV
slapon wrist he made 100 million, not to metion he’s a LEGEND.
slapon wrist he made 100 million, not to metion he’s a LEGEND.
So your plan is to get the attention of traders by telling them that if they manipulate markets to make $100mil+ they will get fined $30mil? Well played, FERC.
So your plan is to get the attention of traders by telling them that if they manipulate markets to make $100mil+ they will get fined $30mil? Well played, FERC.
theyre barely. trying to raise funds for the past few years. each pm trades his own money and i guess gives daddy maounis a nibble for expenses
theyre barely. trying to raise funds for the past few years. each pm trades his own money and i guess gives daddy maounis a nibble for expenses
So am I.
So am I.
As am I.
As am I.
Don’t forget me!
Don’t forget me!
When the controlled oil NOPVs were settled in the mid 1980s, you were fined 40% of your “ill gotten gains” and paid 12.5% down and $2 million a year until paid up.
When the controlled oil NOPVs were settled in the mid 1980s, you were fined 40% of your “ill gotten gains” and paid 12.5% down and $2 million a year until paid up.
When that gets old, you can always just buy a pardon for $1M
-Marc Rich
When that gets old, you can always just buy a pardon for $1M
-Marc Rich
I just wonder, what the fuck do you know abt being the bitch?… Asshole
– Jeff
I just wonder, what the fuck do you know abt being the bitch?… Asshole
– Jeff
There’s nothing funny in this ordeal except that I was able to raise a second fund. BWAHAHAHA.
Now, I’m going to have to fine you…that’ll be $30 million canadian…or $10 US….whichever you’d prefer.
Now, I’m going to have to fine you…that’ll be $30 million canadian…or $10 US….whichever you’d prefer.
And me, too.
And me, too.
Brian – you suck and I own you. I am smarter than you and am now a billionaire for taking the other side of your trades.
- John “Brian is my bitch” Arnold
Brian – you suck and I own you. I am smarter than you and am now a billionaire for taking the other side of your trades.
- John “Brian is my bitch” Arnold
about as much as you.
-Bubba The Federal Pen Love Machine
about as much as you.
-Bubba The Federal Pen Love Machine
Ditto
Ditto
Legend
Legend
Does that mean he has to pay taxes on the full 100 million plus give 30 million back?
Does that mean he has to pay taxes on the full 100 million plus give 30 million back?
The lawyer who brought the case is named Susan Court. Do you think she goes by Sue Court?
The lawyer who brought the case is named Susan Court. Do you think she goes by Sue Court?
you should probably add me too
you should probably add me too
and Yes, I do realize 1) Dan Aykroyd actually says this and 2) CAD>USD….I just didn’t think extensive knowledge re: a Michael Moore film would get me too far here
and Yes, I do realize 1) Dan Aykroyd actually says this and 2) CAD>USD….I just didn’t think extensive knowledge re: a Michael Moore film would get me too far here
i wish there was an ‘unlike’ button. thx
One would think that if you could afford a private island, that you’d buy something better than a Pontiac.
-UBS Ops
One would think that if you could afford a private island, that you’d buy something better than a Pontiac.
-UBS Ops
One would think that if you could afford a private island, that you’d buy something better than a Pontiac.
-UBS Ops
Amature
-J. Meriwether
Amature
-J. Meriwether
Amature
-J. Meriwether
Duh!! He’s holding a fish. Did you even see the picture above??
Me as well
Please, please ….don’t start with the funny names. Please.
Hey now!
My faith in justice is restored! You make $100 million manipulating the markets and they only let you keep 70% of the gains if they catch you. That’ll teach ‘em.
This guy is not a genius, he made $3 billion before he lost everything, but with high leverage.
Same thing happended with Kerviel. It´s easy to generate massive earnings wenn you got a position of billions of dollar against the market. But both jerks underestimated the market.
Are you suggesting the market can remain “irrational” longer than some firms can remain solvent?
Really people? Really?
Back of the line Bird
-M. Jordan
Not to mention half of #2 at the ROCC
this is bullshit.
no one trader can “manipulate the market”. Take advantage of existing trends. Yes. but not manipulate the entire market.
This kind of thing happens at DE Shaw all the time. No big deal.
I concur. No one person can actually move markets.
-Stephen Perkins
Not to worry, The Feds are all over this stuff like white on rice, protecting you and I from financial shenanigans. Only took 5 years to handle this case. They are doing all they can to distract away from the real criminals like Mozillo, Blankfein, and the boys…..
Of course one trader can manipulate a market with a high leveraged position during MOC trading. That folks is a big no no. Leave MOC alone.
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