I think it's pretty awkward and even shady for an employee of a hedge fund to become Brazil's central banker.
I think it's pretty awkward and even shady for a partner of Goldman Sachs to become the Treasury Secretary of the United States.
I can't quite understand why he'd want the job. I read that he used to be on the finance committee there or something -
I can't quite understand why he'd want the job. I read that he used to be a currency trader there or something -
it all seems like a conflict of interest that the SEC should be pulling it's hair out over - only Soros operates offshore.
it all seems like a conflict of interest that the SEC should be pulling it's hair out over - only they don't have jurisdiction over currency matters nor over Presidential appointments.
Picture this situation: It was much rumored over the weekend that Brazil, maybe with the help of the IMF, would intervene with $10B to support the Real, as it's pretty much widely accepted that it's fallen too far. This was the main driver behind the rally in Brazilian shares Monday & Tuesday. What if Fraga were to launch a Real-boosting intervention the day before options expire next month, and he calls Soros and tells him in advance, Soros positions himself accordingly and makes a killing.
Picture this situation: It was much rumored in Sept. 98 that the Fed, maybe with the help of the BOJ, intervened in a big way with an unknown amount of money to support the Yen, as it was pretty much widely accepted that it had fallen too far. This was the main driver behind the huge rally in the Yen back then. What if just before Greenspan launched this Yen-boosting intervention, Rubin calls Goldman and tells them in advance, Goldman positions accordingly and makes such a huge killing they could call off their IPO! (Hmmm, conspiracy theorists please feel free to step up....;-)
This may go on behind closed doors all the time, but the appointment of Fraga will leave the markets over-analyzing Soros' every move from now on. Is it really that different than if Soros himself were the new CB?
This may go on behind closed doors all the time, but the appointment of Rubin must have left the markets over-analyzing Goldman Sachs' every move for the past six years. Is it really that different than if Jon Corzine himself were the US Treasury Secretary?
Hi Paul, I wasn't making fun of you, just having some fun with the comparisons.
My personal opinion is that we should allow for the possibility that most people bring high standards of ethics and integrity to their jobs, and that there are laws, oversight and punishment mechanisms for those who fall seriously short.
- Daniel |
