Today in Amaranth: Thursday Roundup

Author:
Updated:
Original:

Unwinding Amaranth’s energy trades is getting more expensive everyday. Yesterday the losses were $4.5 billion. Today they are said to be $6 billion. It’s kinda hard to imagine those kind of numbers. So look at it this way. Yesterday Amaranth’s losses added up to a hole in the Caribbean opening up and swallowing the Bahamas. Today Barbados fell into the abyss too.
But Thursday wasn’t only about even bigger losses. Today came with news about a possible buyout, more trouble at pension funds, lawsuits and an analysts warning that JP Morgan might not be able to manage to energy positions it bought from Amaranth.
•Amaranth losses now at $6.5 billion. [Bloomberg]
•An analyst at Pru warns that JP Morgan might not have the expertise to handle the volatile Amaranth trades it just took on. [MarketWatch]
•Citigroup talks buyout/bailout with Amaranth. [Associated Press]
•Amaranth’s Wednesday letter to investors. [Reuters]
•Pennsylvania and New Jersey pension funds hit by Amaranth losses. [Associated Press]
•Amaranth readies itself for the inevitable lawsuits. Hires Skadden. [Financial Times]
•Banks still scrambling to ramp up their energy trading units. [Forbes]

Related