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AIJ was only responsible for 2.6 billion but the funds went from Japan, to the Caymans, to Hong Kong, and then went poof!

This will affect the pension funds of about 120 Japanese companies.

The threat to economic security is not in this relatively small amount of money but the trust that has been violated by financial practices that promote greed and indifference to the actions of financial managers on those they ostensibly represent. This apparently shady activity is better served by those that frequent gambling houses not those that are squirreling away their hard earned money for their own and their families futures.

AIJ Investment Advisors Co. transferred huge sums in corporate pension assets it manages to a fund in the Cayman Islands and then moved the money to the Hong Kong account of a major European bank, sources said.

The Securities and Exchange Surveillance Commission has not been able to trace where the money went after reaching Hong Kong.

The sources said the SESC was investigating the motive for transferring the funds overseas, including the possibility that the money may have been misappropriated.

It turns out that several of the companies and organizations that entrusted assets in pension funds to AIJ may lose up to half of what had been set aside to make pension payments.

Every worker in every nation deserves better.

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Originally posted to Occupy Wall Street on Sun Feb 26, 2012 at 11:10 PM PST.

Also republished by ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement and Progressive Hippie.

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Comment Preferences

  •  excuse me, but this isn't what the news reports (5+ / 0-)
    Recommended by:
    FishOutofWater, NYFM, scotths, Marjmar, FG

    say.

    your diary should have more research and facts rather than wild suppositions.

    it is true that AIJ has been suspended for a month while the japanese "financial services agency" investigates "possible loses" - this does NOT gel with your title.

    please don't misrepresent what is happening in japan so quickly and so wildly.

    if AIJ has lost money - it will be determined within this month - if they haven't - well, you just screamed FIRE on a blog.

    and, this is yesterday's news - and older.

    furthermore, you didn't give the backstory that the japanese have just moved into the hedge fund arena to bolster pension funds for their increasingly aging population.  however, this does not comprise the ENTIRE pension program.

    you have left out significant information on a significant story.

    you can do better than this diary.  take the time to research and revise, please.

    EdriesShop coupon code for february is FEBRUARYBLOWOUT. More to come in the next few days! - Is GlowNZ back yet?

    by edrie on Mon Feb 27, 2012 at 01:17:26 AM PST

    •  losses - not loses - like this diary has done with (0+ / 0-)

      misinformation and a dire lack of research.

      EdriesShop coupon code for february is FEBRUARYBLOWOUT. More to come in the next few days! - Is GlowNZ back yet?

      by edrie on Mon Feb 27, 2012 at 01:18:10 AM PST

      [ Parent ]

    •  Moving the funds to Hong Kong (1+ / 0-)
      Recommended by:
      FG

      also indicates less nefarious motives.  Hong Kong has real banks.

    •  This looks much worse than the Bloomberg article (4+ / 0-)

      suggests, based on the Asahi Shimbun article he linked to:

      The Financial Services Agency ordered AIJ on Feb. 24 to suspend business operations for one month. The company had collected about 210 billion yen ($2.6 billion) from about 120 corporate pension funds.

      However, AIJ officials told investigators with the SESC that the company was now only managing an investment portfolio worth about 20 billion yen, meaning that about 90 percent of the assets deposited by the corporate pension funds are wiped out.

           Hedge funds often depend on exploiting short-term trends and quick trades to make their money, a one-month suspension of business is not unlike being put out of business permanently. The people quoted in your article are speaking discretely, but the situation appears as bleak as the diary states.

      -5.12, -5.23

      We are men of action; lies do not become us.

      by ER Doc on Mon Feb 27, 2012 at 07:15:50 AM PST

      [ Parent ]

  •  No, you can't say black monday just b/c (0+ / 0-)

    a hedge fund with a billion dollars in assets failed.

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