Regulators fine natgas market manipulaters

WASHINGTON (Reuters) – Two market regulators on Thursday fined two large natural gas players – defunct hedge fund Amaranth Advisors and pipeline company Energy Transfer Partners LP – alleging widespread market manipulation.

In its first enforcement action using new authority provided by Congress, the Federal Energy Regulatory Commission says it will seek $458 million in penalties and the return of unjust profits from the two companies.


In the bigger case, FERC charged Amaranth Advisors, a collapsed hedge fund, its former head trader, Brian Hunter, and fellow trader Matthew Donohoe with manipulating natural gas prices last year and called for $291 million in penalties. The Commodity Futures Trading Commission filed similar charges on Wednesday, though it did not specify any fines or penalties.

Amaranth racked up $6.4 billion in losses from bad natural gas contract bets before it folded last year.

Reuters