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re: How will BR/LSU/TAF handle the Stanford crisis?
Posted on 2/19/09 at 7:35 pm to rabend1
Posted on 2/19/09 at 7:35 pm to rabend1
quote:
The long and short of it is...It sucks everywhere.
this is true, but the idea that baton rouge is somehow immune and won't be hit makes me laugh. it took a little longer than most of the country, but it has started and it will only get worse
1
Posted on 2/19/09 at 7:38 pm to TulaneTigerFan
Baton Rouge is not immune, our economy has a huge advantage over others because we have the oil market which seems to run counter-cyclical. Although the oil market is down just like everything else, it is not in the tank the way that financial centers are.
This post was edited on 2/19/09 at 7:40 pm
Posted on 2/19/09 at 7:44 pm to rabend1
quote:
Many schools depend upon income from their endowments to fund their overhead, due to the financial crisis these endowment funds are worth approximately 60% of the value they had in 2007. Additionally, the interest generated on these endowments is well below what was forcasted, so they are struggling.
i would love to see some of the endowment numbers from the private universities. nacubo released their annual endowment study recently but the numbers only ran through june and don't seem to include the massive losses that some schools have seen lately. for instance they actually have harvard's endowment up 5% and it's crashed since then.
i'm really curious about tulane's endowment. i've met our CIO, i actually almost worked for him, and he seems like he knows his stuff. he's a TU grad who worked with peter lynch for years. i know we were fairly well diversified also. the fact that there hasn't been a press release on the endowment in a long time though makes me think it took a hit
This post was edited on 2/19/09 at 7:50 pm
Posted on 2/19/09 at 7:49 pm to TulaneTigerFan
They've got to be scared to reevaluate those endowments, they typically track the S&P more than the dow given their diversity, but they rose so quickly during the late '90's and early '00, and not just due to continued contributions, I'll bet they lost all that ground due to this crap.
Posted on 2/19/09 at 7:50 pm to rabend1
and a lot of the people supplying donations also lost billions, so you can expect those to fall
Posted on 2/19/09 at 7:55 pm to SlowFlowPro
I know someone personally that had several million in Stanford CDs for their retirement, and they met with an SEC (not the athletic conference) lawyer today, and it wasn't very good news.
The company I work for uses a money market sweep account as their primary checking, and we couldn't get an ACH out earlier this week, and we haven't had a check clear in the last 2 days. They told us the money market accounts were not frozen, but it sure looks like they are.
BR might take a hit if the money is missing, but I thought they were being brought up on charges because they misled investors, basically false advertising. I didn't think the money was missing.
The company I work for uses a money market sweep account as their primary checking, and we couldn't get an ACH out earlier this week, and we haven't had a check clear in the last 2 days. They told us the money market accounts were not frozen, but it sure looks like they are.
BR might take a hit if the money is missing, but I thought they were being brought up on charges because they misled investors, basically false advertising. I didn't think the money was missing.
Posted on 2/19/09 at 7:55 pm to SlowFlowPro
This could free up season tix by this fall.
Posted on 2/19/09 at 7:57 pm to Tigrus Maximus
quote:
I didn't think the money was missing.
i read it described as a Ponzi Scheme
usually those aren't funded well
Posted on 2/19/09 at 8:04 pm to SlowFlowPro
quote:That is the fear. If you are paying returns that are not really being realized on the investments, then you are using investors' money to pay the returns.
quote:
I didn't think the money was missing.
i read it described as a Ponzi Scheme
usually those aren't funded well
Posted on 2/19/09 at 8:05 pm to SlowFlowPro
David Toms is sponsored by Stanford...let me rephrase, was sponsored by Stanford.
This post was edited on 2/19/09 at 8:06 pm
Posted on 2/19/09 at 8:06 pm to SlowFlowPro
the $ was in alleged CDs ( 
) but was actually invested in Real estate which is how he was getting such grand returns for a while then it turned BAD it was not a CD as in FDIC which leads to the misled and the SEC. The funds are not there and people will be lucky to get 25% back.
) but was actually invested in Real estate which is how he was getting such grand returns for a while then it turned BAD it was not a CD as in FDIC which leads to the misled and the SEC. The funds are not there and people will be lucky to get 25% back.Posted on 2/19/09 at 8:15 pm to Lil Br Tiga
quote:
I have yet to hear of anyone I know doing business with these people.
My 401k is locked up Stanford. I'd like to beat that thug a-hole. He is common criminal trash and should go to Levenworth.
Posted on 2/19/09 at 8:18 pm to LSUWEST
Thanks lsuwest and kimjong, I get it now. Sucks hard.
Posted on 2/19/09 at 8:19 pm to biglego
Allen Stanford = 
Posted on 2/19/09 at 8:24 pm to Tigrus Maximus
I'll let you know when those awesome tickets are up for sale. A lot of big brokers from the BR MerLynch office (which used to be one of Merrs best, becasue they had a lot if not all of the BIG $ in BR) went to Stanford when they set up shop in BR which put them on the map so I am sure it is wide spread across BR. I am glad I manage my families $. There will be a generational wealth change over the next 1.5yrs 
and I'm not talkin about baby boomers.
and I'm not talkin about baby boomers.
Posted on 2/19/09 at 8:27 pm to LSUWEST
I think it's likely that the entire $8B is gone, if not more. Just need to figure out how much is in BR. If it's $1.7B, then I fear it could be catastrophic for the area.
Posted on 2/19/09 at 8:30 pm to LSUWEST
It's funny y'all bring up tickets, when I was at the recruiting bash, we ran into a guy who works for Stanford, last name Fontenot, and he invited us to sit with him at their front row table that probably ran them about 5k. 
Posted on 2/19/09 at 8:45 pm to Tiger JJ
quote:
If it's $1.7B, then I fear it could be catastrophic for the area.
i literally can't even fathom how much that would kill BR
Posted on 2/19/09 at 8:48 pm to TippyTiger
quote:
There is 500,000 securities / 100,000 cash sipc insurance on the United states accounts.
If you have over 500,000 it is going to hurt but really you should spread your money out more.
SIPC covers the shares, not their value. This won't protect anyone.
This post was edited on 2/19/09 at 8:53 pm
Posted on 2/19/09 at 8:57 pm to Colonel Hapablap
LINK
No ‘Enron-sized scandal’
The SIPC will restore missing securities to eligible shareholders up to $500,000 in value, and cash up to $100,000. It does not cover market losses. Intact accounts would be transferred to other brokerages, as Lehman Brothers accounts were after the company went bankrupt last year, SIPC spokeswoman Ailis Aaron Wolf said.
Ineligible shareholders include general partners, officers or directors of the failed or troubled firms.
Stanford Financial is an SIPC member, Wolf said.
Meanwhile, investors are starting to go to court. A federal class-action suit was filed late Tuesday seeking compensation for 30,000 investors. Houston lawyer Patrick Zummo, who is crafting a state court lawsuit on investors’ behalf as well, compared the Stanford scandal to Enron.
“It’s not an Enron-sized scandal, but as far as Houston’s concerned, it’s the worst financial scandal since then,” he said.
But for now, the Walshes and other investors have to wait for answers.
“We have lived within our means all our lives. We saved regularly. We’re frugal. The idea that someone could do this to ordinary people who trust them and believe in them is shocking,” Sandra Walsh said.
No ‘Enron-sized scandal’
The SIPC will restore missing securities to eligible shareholders up to $500,000 in value, and cash up to $100,000. It does not cover market losses. Intact accounts would be transferred to other brokerages, as Lehman Brothers accounts were after the company went bankrupt last year, SIPC spokeswoman Ailis Aaron Wolf said.
Ineligible shareholders include general partners, officers or directors of the failed or troubled firms.
Stanford Financial is an SIPC member, Wolf said.
Meanwhile, investors are starting to go to court. A federal class-action suit was filed late Tuesday seeking compensation for 30,000 investors. Houston lawyer Patrick Zummo, who is crafting a state court lawsuit on investors’ behalf as well, compared the Stanford scandal to Enron.
“It’s not an Enron-sized scandal, but as far as Houston’s concerned, it’s the worst financial scandal since then,” he said.
But for now, the Walshes and other investors have to wait for answers.
“We have lived within our means all our lives. We saved regularly. We’re frugal. The idea that someone could do this to ordinary people who trust them and believe in them is shocking,” Sandra Walsh said.
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