Amaranth bows to the inevitable

Many were skeptical about Amaranth Advisors' plan to continue operating. What was clear to many has now become obvious to the company: It has informed investors that it has suspended redemptions and will seek to wind down its funds in an orderly fashion. Citigroup is apparently no longer interested in playing the white knight. According to a letter from embattled founder Nicholas Maounis, the fund has lost up to 70 percent for the month and up to 60 percent for the year. That hurts, of course, but it could have been a lot worse. Many will argue that the regulatory system is working. No one is really crying for investors. And as of now, no one is suggesting anything fraudulent has occurred.

For more on Amaranth:
- Here's a New York Times article
- Fortress Investment Group has been hired to liquidate assets. Article
- Amaranth's fallen trader left last week. Article