Bernanke Acting as Shill for SIV Rescue Plan?

Bernanke may not be touting the SIV rescue plan with the media, but this article in Bloomberg (hat tip Eschaton) suggests that he is supporting the selling effort:

Loomis Sayles & Co. declined to invest [in the SIV rescue plan] after receiving one of 16 invitations for a meeting earlier this month with current Fed Chairman Ben Bernanke, said Daniel Fuss, who oversees $22 billion as chief investment officer at the Boston-based firm. The Securities Industries Financial Markets Association trade group extended the invitations, Fuss said.

The meeting was a general session initiated by the trade group to discuss current market developments and led to “some very candid give-and-take,” said Richard Hunt, SIFMA’s senior managing director for government relations. Spokeswoman Michelle Smith at the Federal Reserve confirmed the meeting took place.

“It’s so nice to get a personal invitation to go to Washington and have a one-hour visit with Ben Bernanke,” said Fuss, who decided participating wasn’t worth the risk to his firm. “Oh, boy, did I feel important for about 27 seconds, and then you smell a rat.”

As we have noted, the plan depends on the participation of institutional investors, and the story also featured critical comments from them.

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  1. Independent Accountant

    Why not have Helicopter Ben shill for it? Larry Summers was enlisted in the effort apparently. Now Summers is criticizing MLEC as it is apparent it will not fly.

  2. Anonymous

    It’s “an upside-down pyramid — a small amount of collateral holding up a large amount of debt,” says Matthew Eagan, vice president and portfolio manager with Loomis Sayles & Co. “It’s very difficult even for professionals to know where the risks lie.”

  3. Anonymous

    veil of secrecy that shrouds its activities>>>>Abu Dhabi & Citi……total bogus manipulation and Citi unaccountable for mismanaging billions!

  4. Independent Accountant

    You read Mogambu Guru too? I catch him at When he’s good, he’s very, very good. When he’s bad he’s horrid. I am not familiar with Lee Adler. I’ll check him out.

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