Mutual funds (MFs) must get 90% of their income from stocks, bonds and traditional securities. To bypass this, MFs that invest in derivatives and commodities set up shell corps in the Caymans to do it. They then sell shares in the offshore subsidiary shells to the mutual funds. This way the funds technically invest in SEC allowed instruments, profits go to mutual fund investors free of corp. tax and the investments escape CFTC scrutiny. Scared?
Tag Archives: SEC
Well Bowl me Over
Recently there has been massive realignment in college football resulting in fewer “major” conferences with more teams. I wonder if Congress will get involved. Might a Senator from a jilted school get the DOJ/FTC to investigate the idea that these super conferences — that lack any regional basis and involve interstate commerce — are a restraint of trade and represent increased concentration in the college football market and specifically valuable TV broadcast rights?