Wealth Vigilance
An Unfortunate Aspect Of Wall Street Today
Now that you’ve built that massive wealth and hired the best wall street has to offer, vigilance is still the best thing you can do to keep your financial freedom aspirations alive.
The recent sensation of the most negative kind where a cash invesment manager could have “alegedly” built a ponzi scheme right under the noses of the supposed best regulators highlights the inherent risks of even the most secure invesments.
News that even the blue bloods of invesment firms were duped made it troubling enough. But there were literaly thousands of people, many with their entire life savings gone in a puff of smoke virtually overnight. How are they even going to live now?
The latest mega case of such a ponzi scheme is thus far has an alleged victims who sunk cash into veteran Wall Street money manager, who was well respected as a former Chairman of the Nasdaq Stock Market investment pool, include real estate magnate Mortimer Zuckerman, the foundation of Nobel laureate Elie Wiesel, and a charity of movie director Steven Spielberg, according to the Wall Street Journal. They are not alone; HSBC Holdings PLC, Royal Bank of Scotland Group PLC and Man Group PLC, Spain’s Grupo Santander SA, France’s BNP Paribas and Japan’s Nomura Holdings have reported that they had fallen victim to the alleged US$50-billion Ponzi scheme.
But at this time, alleged or not, the result is that $50 Billion seem to have vanished!
Could this disaster to so many people’s life savings been averted? Perhaps not entirely. There may or may not have been anything technically that the regulators could have done, but most certainly there was a failure in the level of vigilance.
Then, the investors themselves could have taken a page out of the big securities’ firms strategy of not putting all their eggs in one basket.
I understand, many are highly confident of someone who gets them seemingly very high returns on their money and so put more money there and then get complacent about it. Time and time again this happens – sometimes with very dire and sad consequences.
How can these people, the pensioners and charities, etc. recover their moneys? This is up to the authorities to hopefully find some of that money and there may be special insurances that may be available to make up for some of those losses. But it is only speculation.
It is my hope that money is found, and the first to be paid back will be those who need it the most will be the first to the trough.
Tags: cash investment manager, Investors, Vigilance, Wealth
Posted in Competition and Business Strategy, Financial Freedom, Wealth Vigilance | 2 Comments »
