Fund




Einstein and the great Fed Robbery - Nanex: LINK ¤ NANEX

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  • "our experience analyzing the impact of hundreds of news events at the millisecond level tells us"

 

 

 

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  • "that it takes at least 5 milliseconds for information to travel between Chicago and New York"

 

 

 

 

 

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  • "even though Chicago is closer to Washington DC than New York, the path between the two cities is not straight"

 

 

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  • "so it takes information a bit longer, about 7 milliseconds, to travel between Chicago and Washington"

 

 

 

 

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  • "it takes little under 2 milliseconds between Washington and New York"

 

 

 

 

 

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  • "when the information was officially released in Washington"

 

 

 

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  • "New York should see it 2 milliseconds later, and Chicago should see it 7 milliseconds later"

 

 

 

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  • "which means we should see a reaction in stocks (which trade in New York) about 5 milliseconds before a reaction in financial futures (which trade in Chicago)"

 

 

 

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  • "and this is in fact what we normally see when news is released from Washington"

 

 

 

 

 

 

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  • "however, upon close analysis of millisecond time-stamps of trades in stocks and futures (and options)"

 

 

 

 

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  • "we find that activity in these instruments exploded in the same millisecond"

 

 

 

 

 

 

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  • "this is a physical impossibility"

 

 

 

 

 

 

 

 

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  • "also, the reaction was within 1 millisecond, meaning it couldn't have reached Chicago (or New York): another physical impossibility"

 

 

 

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  • "each chart shows first, Gold Futures (GC - traded in Chicago) followed by GLD (traded in New York)"

 

 

 

 

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  • "the last chart shows the event at 14:00:00, where Gold Futures trades at the exact same time as GLD stock"

 

 

 

 

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  • "this is physically impossible unless information was already present in Chicago and New York"

 

 

 

 

 

 

 

 

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conclusion: there are 2 possibilities, and both aren't good news for Wall Street:

 

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  • "the Fed news was condensed by a news service into a simple "No Tapering" message (something easily readable by a machine)"

 

 

 

 

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  • "and then placed on news servers co-located next to trading machines in both New York and Chicago at some time before 2pm"

 

 

 

 

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  • "the Fed news was released from a lock-up room which prevents transmission of any information to the outside world"

 

 

 

 

 

 

 

 

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2. leaked to Wall Street:


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  • "the Fed news was leaked to a large Wall Street Firm who made the decision to pre-program their trading machines"

 

 

 

 

 

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  • "in both New York and Chicago and wait until precisely 2pm when they would buy everything available"

 

 

 

 

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  • "it is somewhat fascinating that they tried to be "honest" by waiting until 2pm, but not a thousandth of a second longer"

 

 

 

 

 

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  • "we singled out gold, because it was one of the few instruments with high activity in the minutes before 2pm"

 

 

 

 

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  • "this high activity allowed us to verify that the exchange time stamps we used later, were accurate"

 

 

 

 

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  • "it wasn't just gold"

 

 

 

 

 

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  • "it was everything that traded"

 

 

 

 

 

 

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  • "the 1/100th of a second after 2pm was the most active 10 milliseconds in the history of the US Stock an Futures markets"

 

 

 

 

 

 

 

 

 

 

 

 

 

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EU moves to curb Food Price Bets - the Guardian: LINK ¤ the GUARDIAN

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  • "the European Union has voted through rules to limit the ability of banks and hedge funds"

 

 

 

 

 

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  • "to bet on food prices"

 

 

 

 

 

 

 

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  • "the new rules, known as Mifid, will curb speculation and help decrease price volatility"

 

 

 

 

 

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  • "which had a devastating impact on poor and food dependent countries"

 

 

 

 

 

 

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  • "the rules will establish an effective system of limits on the positions taken by financial players"

 

 

 

 

 

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  • "to curb speculation of staple foods and other commodities"

 

 

 

 

 

 

 

 

 

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  • "the new rules come after a series of high profile stories detailing"

 

 

 

 

 

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  • "the millions banks, hedge funds and commodity traders"

 

 

 

 

 

 

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  • "have made from betting on the price of food"

 

 

 

 

 

 

 

 

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  • "at the height of a severe drought in 2011, the head of food trading at commodity trader Glencore"

 

 

 

 

 

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  • "told investors that the drought was good for Glencore because it could exploit soaring prices"

 

 

 

 

 

 

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  • "the United Nations estimates that annual financial trading in food commodities has risen from US$ 65bn"

 

 

 

 

 

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  • "to US$ 126bn in the past five years"

 

 

 

 

 

 

 

 

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  • "Michel Barnier, the European Commissioner responsible for financial services"

 

 

 

 

 

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  • "has described companies' profiteering from food trading as outrageous"

 

 

 

 

 

 

 

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  • "the new rules are a key step towards establishing a safer, and more responsible financial system"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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BERKSHIRE HATHAWAY - Wikipedia EN: LINK ¤ BERKSHIRE HATHAWAY

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  • "Berkshire Hathaway Inc, Warren Buffett, is an American company: holdings"

 

 

 

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[ revenue US$ 210.82 billion (2015) - net income US$ 24.08 billion (2015) ]





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  • "Berkshire focuses on long-term investments"

 

 

 

 

 

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  • "an averaged an annual growth in book value of 19.7%"

 

 

 

 

 

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  • "for the last 48 years"

 

 

 

 

 

 

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  • "and minimal debt"

 

 

 

 

 

 

 

 

 



 

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Kohlberg Kravis Roberts - KKR - Wikipedia EN: LINK ¤ K K R

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  • "KKR & Co LP is an American company: private equity"

 

 

 

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[ revenue US$ 8.89 billion (2013) - net income US$ 0.69 billion (2013) ]






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  • "it specialized in leveraged buyouts

 

 

 

 

 

 

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  • "(a transaction when a company is purchased with a combination of equity and significant amounts of borrowed money"

 

 

 

 

 


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  • "structured in such a way that the target's cash flows are used as the collateral (or "leverage") to secure and repay the borrowed money)"

 

 

 

 

 

 

 

 

 

 

 

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BLACKSTONE Group - Wikipedia EN: LINK ¤ BLACKSTONE

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  • "the Blackstone Group LP is an American company: private equity"

 

 

 

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[ revenue US$ 7.48 billion (2014) - net income US$ 1.58 billion (2014) ]












 

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TPG - Wikipedia EN: LINK ¤ T P G

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  • "TPG Capital is an American company: private equity"

 

 

 

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[ assets under management: US$ 75.00 billion ]







 

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CARLYLE Group - Wikipedia EN: LINK ¤ CARLYLE

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  • "Carlyle Group is an American company: private equity"

 

 

 

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[ revenue US$ 3.02 billion (2014) - net income US$ 0.96 billion (2014) ]





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  • "assets under management: US$ 194 billion"

 

 

 

 

 

 

 

 

 

 

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PAULSON & Co - Wikipedia EN: LINK ¤ PAULSON

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  • "Paulson & Co Inc is an American company: hedge fund"

 

 

 

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[ assets under management: US$ 18.00 billion ]






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  • "Goldman Sachs put together a "synthetic" collateralized debt obligation (CDO) called ABACUS 2007-AC1"

 

 

 

 

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  • "were investors - the European banks IKB Deutsche Industrie, and ABN Amro, and the New York insurance company ACA Financial Guaranty"

 

 

 

 

 

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  • "provided the "long" by taking the risk from subprime mortgage bonds"

 

 

 

 

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  • "effectively providing Paulson with default insurance"

 

 

 

 

 

 

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  • "Paulson made about US$ 1 billion total from those investors' losses"

 

 

 

 

 

 

 

 

 

 

 

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BRIDGEWATER Associates - Wikipedia EN: LINK ¤ BRIDGEWATER

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  • "Bridgewater Associates is an American company: hedge fund"

 

 

 

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[ assets under management: US$ 169.00 billion ]







 

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inside the World's biggest Hedge Fund - CNN Money: LINK ¤ CNN MONEY

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  • "Bridgewater CEO Dalio translates his insights into algorithms:"

 

 

 

 

 

 

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  • "a powerful computer system scour dozens of markets around the world"

 

 

 

 

 

 

 

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  • "looking for mispriced assets and other opportunities"

 

 

 

 

 

 

 

 

 

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  • "his computers concentrate heavily on the currency and fixed-income markets"

 

 

 

 

 

 

 

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  • "computers scan the world for opportunities in roughly 100 different categories"

 

 

 

 

 

 

 

 

 

 

 

 

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QUANTUM - Wikipedia EN: LINK ¤ QUANTUM

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  • "Soros Fund Management LLC is an American company: hedge fund"

 

 

 

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[ assets under management: US$ 27.90 billion ]






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  • "in the week leading up to September 16, 1992 or "Black Wednesday""

 

 

 

 

 

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  • "Quantum Funds earned US$ 1.8 billion"

 

 

 

 

 

 

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  • "by shorting British pounds and buying German marks"

 

 

 

 

 

 

 

 

 

 

 

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CITADEL LLC - Wikipedia EN: LINK ¤ CITADEL

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  • "Citadel LLC is an American company: hedge fund"

 

 

 

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[ assets under management: US$ 25.00 billion ]






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  • "unlike most other hedge funds"

 

 

 

 

 

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  • "where investors are charged a management fee of 1-2 percent of assets"

 

 

 

 

 

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  • "and 20 percent of profits"

 

 

 

 

 

 

 

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  • "investors are charged 3-6 percent of assets by Citadel"

 

 

 

 

 

 

 

 

 

 

 

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DE SHAW - Wikipedia EN: LINK ¤ DE SHAW

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  • "DE Shaw & Co LP is an American company: hedge fund"

 

 

 

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[ assets under management: US$ 30.00 billion ]






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  • "it's primary trading method is systematic and computer-driven"

 

 

 

 

 

 

 

 

 

 

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RENAISSANCE Technologies - Wikipedia EN: LINK ¤ RENAISSANCE

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  • "Renaissance Technologies is an American company: hedge fund"

 

 

 

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[ assets under management US$ 65.00 billion ]






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  • "it trades in markets around the world"

 

 

 

 

 

 

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  • "complex mathematical models analyze and execute trades"

 

 

 

 

 

 

 

 

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  • "many of them automated"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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HEDGE FUNDS - Wikipedia EN: LINK ¤ HEDGE FUNDS

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  • "the name "hedge fund" refers to the hedging techniques used by hedge funds"

 

 

 

 

 

 

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  • "they avoid direct regulatory oversight, bypass licensing requirements"

 

 

 

 

 

 

 

 

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  • "hedge funds aim to achieve a positive return on investment"

 

 

 

 

 

 

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  • "regardless of whether markets are rising or falling"

 

 

 

 

 

 

 

 

 

 

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  • "2013, the size of the global hedge fund industry was US$ 2.4 trillion"

 

 

 

 

 

 

 

 

 

 

 

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  • "these funds use leverage, the practice of borrowing money"

 

 

 

 

 

 

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  • "trading on margin, or using derivatives to obtain market exposure"

 

 

 

 

 

 

 

 

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  • "management fees are 2% of the fund's net asset value"

 

 

 

 

 

 

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  • "a performance fee of 20% is typically"

 

 

 

 

 

 

 

 

 

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  • "such fees create an incentive for high-risk investment management"

 

 

 

 

 

 

 

 

 

 

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  • "half of the hedge funds are registered offshore and half onshore"

 

 

 

 

 

 

 

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  • "the Cayman Islands accounting for 34% of the global hedge funds"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Long-Term Capital Management - Wikipedia EN: LINK ¤ L T C M

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  • "Long-Term Capital Management LP, LTCM, was a hedge fund management firm"

 

 

 

 

 

 

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  • "initially with annualized return of over 21% in its first year"

 

 

 

 

 

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  • "41% in the second year and 43% in the third year"

 

 

 

 

 

 

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  • "in 1998 it lost US$ 4.6 billion in less than four months"

 

 

 

 

 

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  • "with the fund liquidating and dissolving in early 2000"

 

 

 

 

 

 

 

 

 

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  • "the company used complex mathematical models"

 

 

 

 

 

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  • "of fixed income arbitrage deals usually with US, Japanese, and European government bonds"

 

 

 

 

 

 

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  • "because these differences in value were minute - especially for the convergence trades"

 

 

 

 

 

 

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  • "the fund needed to take highly-leveraged positions to make a significant profit"

 

 

 

 

 

 

 

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  • "at the beginning of 1998, the firm had equity of US$ 4.72 billion"

 

 

 

 

 

 

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  • "and had borrowed over US$ 124.5 billion"

 

 

 

 

 

 

 

 

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  • "it had off-balance sheet derivative positions with a notional value of US$ 1.25 trillion"

 

 

 

 

 

 

 

 

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  • "to avoid any regulation, it only accepted stakes from one hundred individuals with more than one million dollars"

 

 

 

 

 

 

 

 

 

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  • "the bulk of the money came from companies and individuals connected to the financial industry"

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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