FERC Shoots Down Proposed Amaranth Settlement

Law360, New York (February 13, 2009, 12:00 AM EST) -- The Federal Energy Regulatory Commission made an about-face Thursday, rejecting a settlement between its enforcement litigation staff and defunct hedge fund Amaranth Advisors LLC.

In an order, FERC said that Amaranth and two of its former traders profited far in excess of the proposed settlement amount when they recklessly manipulated natural gas futures contract prices.

“Having considered the gravity of the alleged violations, the potential remedies for those violations if proven to have occurred and the remedies offered in the settlement, the commission concludes that the...
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