Now we know – not all of Noel’s money is on Mustique

Walt and his Fairfield Greenwich Group were paying kickbacks to bankers who placed their clients’ money with them. So how much of Walt’s 2% -20% fee went to Geneva? He’s not saying. Yet.

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One response to “Now we know – not all of Noel’s money is on Mustique

  1. CEA

    Even if he paid them 1% a year (a tremendous amount, in my experience), FGG still kept 1% and 20%. So the client who put in $100 mil was charged $2 mil in management fees, PLUS 2% in incentive fees ($100 mil, up 10%, times 20%), or another $2 mil.

    Of that $4 mil, FGG kicks $1 mil to Switzerland, another $1 mil to Bernie (he charged 1%, right? no incentive fee b/c his “trading commissions” made up for it supposedly), and keeps $2 mil.

    Now, multiply that by 75 to get to $7.5 bil. $2 mil x 75 = $150 mil PER YEAR (and that assumes all of it was from Switzerland. Plenty of FGG’s money did not come from people who wanted kickbacks; some they brought in themselves).

    Nice business. Kickbacks are illegal in most places. Welcome to the end of secretive Swiss banking. It worked as long as no one talked about how the bankers themselves got paid. But now that people know that the bankers took kickbacks to put clients in funds which did not have the best performance, but DID have excellent payment schemes for the salesmen – well – it will no longer work.

    Transparency is the enemy of high profitability.