May 18, 2022
IT'S THE "HOUSING BUBBLE" BUT NOT INDUSTRY WIDE:
Allianz to pay $6 bln in U.S. fraud case, fund managers charged (Tom Sims, Alexander Hübner and Jonathan Stempel, 5/17/22, Reuters)
Once with more than $11 billion of assets under management, the Structured Alpha funds lost more than $7 billion as COVID-19 roiled markets in February and March 2020.Allianz Global Investors US LLC was accused of misleading pension funds for teachers, bus drivers, engineers, religious groups and others by understating the funds' risks, and having "significant gaps" in its oversight. read moreInvestors were told the funds employed options that included hedges to protect against market crashes, but prosecutors said the fund managers repeatedly failed to buy those hedges.
Likewise, 2008 was just a function of fraudulent securities, where subprime loans had been disguised as prime to hide risk.
Posted by Orrin Judd at May 18, 2022 8:23 AM