• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Watchdog Calls for Oversight of Private Fund Managers Advising Government

Since the Obama administration doesn’t seem all that concerned about potential conflicts of interest of having private fund managers advising the government on its $1.25 trillion mortgage-backed securities purchase program while also investing in similar assets on behalf of private clients, the Project on Government Oversight sent a letter to Congress today asking for a little more oversight.

Private asset managers — including Pacific Investment Management Co. (PIMCO), BlackRock, Inc., Goldman Sachs Asset Management, and Wellington Management Company — “are now playing a pivotal role in programs managed by both the Fed and Treasury,” writes POGO.

Although “[i]t’s perfectly understandable that the government is relying on the expertise of these private fund managers to assist with the complex tasks of asset management and valuation … POGO is concerned … about the conflicts of interest that could arise if these fund managers are also investing in the same types of assets for their private clients. These conflicts of interest could have a wide range of consequences, including financial losses for the American taxpayer, an unfair competitive advantage for the fund managers, and the continued erosion of public confidence in the government’s ability to stabilize the financial system.”

POGO notes, for example, that “Bloomberg News recently reported that PIMCO had been advising the federal government on the value of $118 billion in assets—including securities backed by residential and commercial loans—that were guaranteed in the bailout of Bank of America Corp. But PIMCO had also been investing in these same types of mortgage-backed securities for a wide range of private clients. In fact, as of March 31, 2009, PIMCO was carrying around $967 million in its mortgage-backed securities fund.”

Although Bank of America ended up not going through with the deal, as Rep. Scott Garrett (R-N.J.) pointed out to Bloomberg: “Pimco and others potentially have two masters to serve: the U.S. taxpayer and their own fiduciary obligations to clients.”

Government watchdogs want Congress to take make sure the advice private fund managers are giving is truly independent and that U.S. taxpayers don’t get the raw end of the deal.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.