Thursday, November 15, 2007

Amaranth sues JPMorgan

Amaranth's collaspe was aided by JPMorgan, or so the lawsuit alleges. What took Amaranth so long? Here's what I had to say on August 10th:

But if you mark it down for him, don't you have to mark it down for yourself? That's what the SEC wants to know. Why don't they have losses when everyone else is having them? At least that's probably what the disgruntled fund said to the SEC.

Do you think I'm making this stuff up? Does anyone remember listening to JP Morgan's third quarter conference call last year crowing about the $750 million they made for buying Aramanth's energy portfolio of natural gas positions, when they had "margin calls" and were forced to liquidate? Who was their prime broker that gave Aramanth the margin call that forced the liquidation?

It was JP Morgan, who were able to buy this "distressed" merchandise and sell it two weeks later to Citadel for almost a billion dollars of profit.

It was so comical that JPMorgan would brag about this deal. Now the courts will have to decide if another investment bank took advantage of a leveraged player.

What a novel concept!

2 comments:

Anonymous said...

Digital memory,to me, is something that I seem to be unable to ever have enough of. It feels like megabytes and gigabytes have become an inseparable part of my every day existence. Ever since I bought a Micro SD Card for my DS flash card, I've been on the constant lookout for large memory at low prices. It's driving me crazy.

(Posted on NetSurf for R4i Nintendo DS.)

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