Remember the good old days? You know, when hedge-funds were still an asset class? When they roamed the earth, masters of all they surveyed? Back when men were men and administrative assistants were scared? Back when a multi-billion dolalr hedge fund blow-up could be so shockingly boring that a mere two years later you barely remembered its name? When even the largest blow-up to that point hadn't caused enough of a problem that talking heads had to repeatedly explain what a "counterparty" is. They see a distant memory, I know, but they happened. I have evidence. Like this articule in the New York Times on Amaranth and its counterparties.
Amaranth Advisors, the $9.2 billion hedge fund that collapsed in 2006, has moved closer to having its day in court with JPMorgan Chase.
Though a judge has granted JPMorgan's motion to dismiss five of Amaranth's legal claims against it, he ruled that one of Amaranth's claims -- that JPMorgan breached its client agreement in its role as Amaranth's prime broker -- can proceed, according to a decision filed electronically with the New York Supreme Court on Monday.
Amaranth and its founder, Nick Maounis, have alleged in court documents that JPMorgan unfairly used its power as the hedge fund's prime broker to profit from bad bets Amaranth made on the natural-gas market.
Kids today, I tell you. No respect for anything. It's getting so you can't even take undue advantage of your prime brokerage agreement.
Amaranth Claim Against JPMorgan to Proceed [The New York Times]