3 ms·
Surely nobody in the world of finance has been making money off of these pensions becoming vulnerable to bank runs. And even if there were someone profiting, th
by boomboomsubban 4y ago
Surely nobody in the world of finance has been making money off of these pensions becoming vulnerable to bank runs. And even if there were someone profiting, they wouldn't have done so by choice, it just happened.
- thfuran 4y agoIt's an inevitable consequence of Madoff's Third Law of Finance. There's just no getting around it.
- ISL 4y agoFrom my read of Levine's explanation, it was really the promise of a greater pension outcome for a given amount of contribution. Whether the contribution was smaller or the outcome larger is kinda immaterial -- the managers were chasing yield.
- kasey_junk 4y agoAnd also accounting rules not really being well factored for the pension use case.
- mejutoco 4y agoI am not an expert but if someone managing a pension fund makes it less underfunded by using some of these instruments/techniques they might get a bonus for good performance, don't they? Or am I misunderstanding something.