Business news for Wed, 14 Nov 2007 & with words bank+efforts. 3 news.

AMARANTH Advisors LLC, the hedge-fund firm that failed last year after losing US$6.5 billion, has sued JPMorgan Chase & Co. It is accusing the bank of sabotaging its efforts to stave off collapse, Bloomberg News reported. Amaranth lost 65 percent of assets in September 2006 because of a wrong-way wager on natural gas. JPMorgan, the third-largest United States bank, and hedge-fund manager Citadel Investment Group LLC later took over the Greenwich, Connecticut-based firm's energy trades. Amaranth returned cash to investors this year. In a letter on Tuesday to investors, founder Nicholas Maounis said US$2.5 billion of the firm's losses came from a cash concession made to JPMorgan for taking over the energy-derivatives portfolio. He said the bank interfered with his attempts to strike a better deal with Goldman Sachs Group Inc or Citadel. "JPMorgan used its position as the fund's clearing broker to prevent the fund from executing a more favorable transaction, to extract

CHINA'S central bank will "moderately" step up efforts to prevent the economy from overheating, the Financial News reported yesterday, citing Governor Zhou Xiaochuan. The People's Bank of China will seek to maintain "reasonable" money and loan growth, stabilize inflation expectations and prevent negative real interest rates, the newspaper quoted Zhou as saying. The central bank will enhance co-ordination between interest-rate and exchange-rate policies, Zhou said without being specific. He reiterated that China will further improve the exchange-rate mechanism and increase the flexibility of the yuan.

Amaranth Advisors, the hedge fund that failed last year after losing $6.5 billion, sued JPMorgan Chase, accusing the bank of sabotaging its efforts to stave off collapse. Amaranth lost 65 percent of assets in September 2006 because of a wrong-way wager on natural gas. JPMorgan Citadel Investment Group later took over the Greenwich, Conn. based firm’s [...]