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Published:March 13th, 2009 12:44 EST
Obama's Investments Are In A Blind Trust: How Safe Is His Money?

Obama's Investments Are In A Blind Trust: How Safe Is His Money?

By Robert Paul Reyes

 

 
"The Obamas` investments are held in something called a `blind trust.` This type of trust is constructed so that the President and First Lady have no knowledge of what they`re actually investing in, thereby eliminating possible conflicts of interest. Prior to his run for the presidency, the then-Senator put all of his family`s stock investments in a trust that was overseen by an independent trustee. Once in the trust, the Obamas could make no special buy or sell requests. The trustee/advisor could buy and sell stocks independently, without telling the Obamas the details of the transactions, leaving the President in the dark about his investments." Greg Sabin/mental_floss

A president places his investments in a blind trust so that he won`t be accusing of manipulating the market to enrich himself. If Obama had not done this, every executive order he issued and every speech he made would be scrutinized for ulterior motives. Did Obama say, "As General Motors goes so goes the country" in his speech the other day, because he owns a lot of stock in GM?

Bernard Madoff and unscrupulous investment bankers have destroyed what little faith the public had in the stock market. Most of us are now convinced it`s a rigged system, where only the powerful and well-connected have any chance of making a killing.

If a president didn`t place his investments in a blind trust, it might be the final straw that brings down the house of cards known as the stock market.

"Blind Trust" is a very appropriate phrase for this type of financial arrangement, Obama can`t see how his portfolio is doing and he must trust that the individual in charge isn`t incompetent or malicious.

Sabin`s ruminations on Obama`s blind trust has really got me thinking: Who is this person responsible for handling the investments of the President of the United States?

What if this independent trustee, unbeknown to anyone, has a vendetta against Obama? If Bank of America is about to declare bankruptcy, he could move all of the president`s investments into the failed bank. When Obama leaves the White House eight years from now he may discover that the money in his blind trust has disappeared.

If the independent trustee is a big booster of Obama, he could spend all his time reading Obama`s speeches and researching his policy positions to enable him to act in a manner that will enrich Obama. For example if Obama has cordial discussions with the biotech industry and he issues a favorable report, he could move money there.

For the sake of the president`s financial portfolio, I hope that the trustee handling his money is competent and has Obama`s best interests at heart. But many Americans feel like their pension plans and 401K plans are in a blind trust. How do we know that a Bernard Madoff type isn`t engaging in financial shenanigans with our hard-earned money? Unfortunately, we are all in the same boat as Obama, we are blind unable to discern if our money is being pilfered. By the time we retire most of the money in our investment plan may have vanished due to incompetence and corruption.

, thereby eliminating possible conflicts of interest. Prior to his run for the presidency, the then-Senator put all of his family`s stock investments in a trust that was overseen by an independent trustee. Once in the trust, the Obamas could make no special buy or sell requests. The trustee/advisor could buy and sell stocks independently, without telling the Obamas the details of the transactions, leaving the President in the dark about his investments." Greg Sabin/mental_floss

A president places his investments in a blind trust so that he won`t be accusing of manipulating the market to enrich himself. If Obama had not done this, every executive order he issued and every speech he made would be scrutinized for ulterior motives. Did Obama say, "As General Motors goes so goes the country" in his speech the other day, because he owns a lot of stock in GM?

Bernard Madoff and unscrupulous investment bankers have destroyed what little faith the public had in the stock market. Most of us are now convinced it`s a rigged system, where only the powerful and well-connected have any chance of making a killing.

If a president didn`t place his investments in a blind trust, it might be the final straw that brings down the house of cards known as the stock market.

"Blind Trust" is a very appropriate phrase for this type of financial arrangement, Obama can`t see how his portfolio is doing and he must trust that the individual in charge isn`t incompetent or malicious.

Sabin`s ruminations on Obama`s blind trust has really got me thinking: Who is this person responsible for handling the investments of the President of the United States?

What if this independent trustee, unbeknown to anyone, has a vendetta against Obama? If Bank of America is about to declare bankruptcy, he could move all of the president`s investments into the failed bank. When Obama leaves the White House eight years from now he may discover that the money in his blind trust has disappeared.

If the independent trustee is a big booster of Obama, he could spend all his time reading Obama`s speeches and researching his policy positions to enable him to act in a manner that will enrich Obama. For example if Obama has cordial discussions with the biotech industry and he issues a favorable report, he could move money there.

For the sake of the president`s financial portfolio, I hope that the trustee handling his money is competent and has Obama`s best interests at heart. But many Americans feel like their pension plans and 401K plans are in a blind trust. How do we know that a Bernard Madoff type isn`t engaging in financial shenanigans with our hard-earned money? Unfortunately, we are all in the same boat as Obama, we are blind unable to discern if our money is being pilfered. By the time we retire most of the money in our investment plan may have vanished due to incompetence and corruption.