The Soros Loophole

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It wasn’t that long ago that currency speculator George Soros was traveling the globe urging a regulatory crackdown on the same financial sector that has allowed him to become a billionaire 14 times over.

In late 2008 the preachy political radical who has given more than $8 billion to charities and left-wing causes lectured a congressional committee. “The entire regulatory framework needs to be reconsidered and hedge funds need to be regulated within that framework,” he pontificated.

Soros got his wish, and the lawmakers his money helped to install in Congress dutifully approved the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203).

Soros talks a good game when it comes to openness and transparency. With an obedient media in tow, he postures as a defender of business ethics and good government but the lofty ideals he espouses apply only to other people. In the end, when his personal interests are at stake, his professed ideals get discarded like yesterday’s racing form.

So it shouldn’t surprise anyone that this man who has described himself as “some kind of god” now doesn’t want to comply with new disclosure rules that accompany the Dodd-Frank law. To avoid complying, he is closing his $25 billion Quantum funds to investors outside his family.

What new regulation does Soros consider to be so burdensome? A mere requirement that hedge funds such as his with more than $150 million under management register with the U.S. Securities and Exchange Commission (SEC) by March 2012. A loophole allows a fund to skip registering if it manages only a family’s funds.

Why would Soros, benefactor of the aggressively leftist Open Society Institute, not want to register like all the other big players on Wall Street? In the scheme of things registration isn’t a big deal. Its major drawback is that it would open up Soros’s shady dealings to unprecedented public scrutiny.

In a case of typically British understatement, the Financial Times of London observed that Soros’s “decision contrasts with his own reputation as an advocate for both government and corporate transparency.”

There’s more than a mere contrast here. Soros’s refusal to register with the SEC is a deliberate betrayal of the principles to which he self-righteously pays lip service.

It’s all part of a pattern. Soros has long believed the rules don’t apply to him.

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  • tanstaafl

    "Very clever, Mr. Bond, but not clever enough!"

  • koran kid

    Wide of the mark. He bought off S&P, and shorted the markets. Big payday for Barry and his circle of loyal left leaning rich friends like Buffet. Command and control response to mess they made. Climate change ponzi and election rigging reserves full again, along with massive ad budget. Barry Two Terms, and three on the trot for the leftists unless someone can talk Trump and Palin into running on a practical ticket in 2016 to save us from a repeat of the 20th century, and perhaps totalitarian victory this time round. It's the only hope. Unless you've got a metaphorical heroine filled banana up your sleeve, in which case, you take out Barry's Blofeld, and I'll use satirical smoke and mirrors to whack Schwarz's Scaramanga! But we'll have to be patient. Wait until this time next term, and both mobsters will be in our sights. These are not the kind of guys you want to wound at the wrong time!

  • rbla

    The Democrats are always bleating about taxing the wealthy. So here is how we do it. We start by putting a steeply progressive tax on currency speculators and make it retroactive 40 years; I would say a 99% rate would be sufficient. The fun will be watching the wealth redistribution Democrats as they try to duck this one. Unfortunately the Republicans are either too stupid to counterattack with such strategies or else are also on the "take".

  • sedoanman

    Reporter: "As a businessman, how do you justify being involved in politics?"

    Businessman: "As a businessman, I must get into politics or get out of business."

  • tanstaafl

    "Time wounds all heels." – Robert A. Heinlein

  • Joey H.

    George Soros also funds John McCain's Reform Institute. I believe that Soros helped to pick Obama's Republican opponent in 2008 to insure Obama's election. Everyone should be alert to the same strategy in 2012.
    Conservatives should be wary of George Soros trying to pick the Republican opponent.

    • alexander

      our GOP is just a bunch brainless neanderthals (except new Tea Party)

  • Nora bee

    there should be some sort of asset forfiture law passed for speculators like Soros who leave trashed economies and destitution in their wake. The forfited assets should be designated to reduce the antional debt. Soro's 14 billion in assets would make a dent, albeit a small dent, in our national debt.

    • Sandy

      Well said! I wonder why nobody ever adds what he did to Italy to his list of trashed economies, only a couple of months after "breaking the Bank of England". His manoeuvers made our currency collapse and enabled him and countless other buyers to snap up Italian companies for a fraction of their actual worth.

  • Sound&Fury

    Not only is Soros' hypocrisy mindboggling, his supporters' hypocrisy is tolerated only because of a compliant media. They rail against the Koch brothers even as they take money from this man. It is disgusting, but business as usual for the left.

  • BLJ

    Soros is a tool.

  • johnnywoods

    It is hard to believe that no one has assassinated that nazi bastard. He should be in Hell with Adolph Hitler.

  • jts

    You forgot where his fund is locacted, Curaçao, a tax haven (trading and research are in NY). He is an enabler of rich people not paying taxes

  • stonefellow

    It is predicted that any agency managed by Barak Obama will not go after George Soros, his main benefactor. So much for transparency, truth, and ethics.

  • BS77

    I can't help but seeing Soros holding his little white cat like #1 in the James Bond movies…

  • mrbean

    Soros is what he is. A meddler and a crook.

  • Irish Bendt

    Well said Travis. Jessica said you may be going to post something. I am disappointed in Jessica for not introducing us before you went to Southern. However, I realize that we are all three very busy and the time may not have presented itself. The next time you are in town and have time for lunch, call or e-mail and I would love to treat you to a meal and talk Seminary with you.God Bless!