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Stock Ideas Investors Daily Edge Why Wayward Banks Deserve Lynch Mob
Stock Ideas Investors Daily Edge Why Wayward Banks Deserve Lynch Mob 
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| Why Wayward Banks Deserve Lynch Mob |
| Thursday, 27 December 2007 | |||||||||
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How the heck is this any different from selling bad meat, toys with lead poisoning, or medicines with serious side effects? I’m not the only one asking these questions. For example, one reader, Gisbert, can’t understand why customers stuck with heavily discounted securities don’t form a lynch mob and go after the big banks which screwed them. Go ahead, Gisbert, tell it like it is. As a German and living in Germany, I am not very much affected by the current banking mess. However, the one question that keeps coming up again and again in me is about all these fund managers and investors that invested in these instruments and lost money. Seeing that GS [Goldman Sachs] shorted them, wouldn't they be so pissed off as to never ever make business with GS again and go to a different firm? Or is it that a lot of fund managers simply don't care? Oh, they care, alright, Gisbert. I think they want revenge. Wouldn’t you? And the rich investors who have their savings tied up in hedge funds? And let’s not forget the not-so-rich investors whose savings in pension funds have also come under attack. Right now the funds are waiting to see what kind of evidence the SEC can dredge up from the more than three dozen investigations it has launched into this very issue. At that point, they’ll have a better idea of what they can do about it. I got a feeling that hard evidence is going to be scarce and the banks are going to get away with conducting themselves in such a shameless and dishonest way. So, where would this leave the hedge funds? Red-faced. And looking a bit stupid. They should’ve known better. They’re not dumb. But greed overruled their better judgment. Happy Holidays, Andrew Gordon P.S. To let me know what you thought of today's article, send an e-mail to: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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