The kind of news perma bulls have to ignore.
SAN FRANCISCO (MarketWatch) -- Federal prosecutors in California plan to file criminal charges against former Calpers CEO Frederico Buenrostro, the Wall Street Journal reported Monday. Buenrostro, the top
official at the California Public Employees' Retirement System, or Calpers, from 2002 to 2008, is already facing a civil fraud lawsuit from the Securities and Exchange Commission tied to an alleged scheme to defraud Apollo Global Management, a New York-based private equity firm.
More fraud? This just in.
(Reuters) - A federal judge ruled on Wednesday that the United States can pursue parts of a civil lawsuit against Bank of America Corp (BAC.N) over its sale of toxic mortgages to Fannie Mae (FNMA.OB) and Freddie Mac........
He's already been indicted on federal conspiracy charges to commit fraud.
What happens to him, is pointless. The point is what did it do to confidence. So many people today only look for news that reafirms thier preconcived notions.
Where are the media outlets on ths. Huh?
I think the Calpers story has the potential to be explosive. This is TOTAL speculation, but I have seen SO many absolutely insane "investments" in California by VCs into CRAZY speculative startups that are "metric" based. For example, avatar generators were huge a couple of years ago. The VCs dumped something like $100+ million in "avatar" related startups. Why? A VC could tell a pension fund like Capers: Good news the "pre-money" was $10 million, and we put in $10 million for 50% of the company. If you take a real tech company to California VCs (revenue, clients, etc.), the odds are 99% that they will laugh you out the building. They have 5,000 kids per month using the service to generate avatars. 6-months later, if the company had 10,000 kids per month, they could claim an IRR (internal rate of return) of 100%. A "Calpers" would 2X'd their money (on paper). Same with the hedges. Buy some dog p00 public company at a 20% discount to the market price, and wow, some pension fund just "made" 20% on a mark to market book keeping entry.
When the largest U.S. public pension fund has it's former chief executive indicted on federal conspiracy charges in connection with a scheme to commit fraud. It makes you wonder why more isn't made of it in the main stream media.
Didn't someone post something about trust. Huh?