Wife of Central Banker Conveniently Makes $50,000 Before Swiss Franc Intervention
We know that Wall Streeters get locked up for insider trading. However, in 2011, we learned that politicians do not.
Due to the nature of their jobs and who they get information from, they are still able to trade off of any information they get and nothing is done about it. Why? They are “The Law” and therefore no one in Washington is going to turn on them at this point and “ruin the game” for everyone in Congress.
However, evidently Congress isn’t the only one that gets to get by with this…evidently, so do the wives of prominent central bankers. That’s right!
Just a few days before the head of Switzerland’s central bank (Phillip Hilldebrand) decided to put a cap on the Swiss franc’s appreciation through currency intervetion, Hilldebrand’s wife shorted the franc (to the tune of $500,000 worth) and bought dollars.
She took advantage of historic Swiss franc strength and converted the money just in time for the huge currency intervention. She ended up making about $50,000 in profit from that trade in under a month’s time.
So why isn’t something being done about it? Well, just as politicians aren’t turning on themselves in Congress…neither are the politicians in Switzerland on their central banker either. Evidently it’s a pretty tight boys club.
Oh they supposedly investigated it. But they concluded that it was such a small sum that no central banker would risk their job over something like that.
You see, Phillip Hilldebrand is one of the highest paid central bankers in the world. Yep, “small Switzerland” pays their central banker far more than America pays Fed governor Bernanke….by a huge margin.
Hilldebrand makes about CHF 862,000 a year which translates to about $950,000 a year. Not too shabby huh? Meanwhile, Ben Bernanke makes about $200,000 a year.
So since this “trade” that wifey made was only about 5% of Hilldebrand’s pay, they don’t see it as a big deal. Must be nice to make an assured $50,000 with no risk because of inside information huh?
Therefore, so far, there’s still a separate set of rules for politicians and central bankers than there is for you and I…interesting huh? I thought so. So if you want to talk about an injustice in the world….there’s one!
I’d rather make money off of information that has been made public and sleep at night. That’s what we’ll continue to do in the Currency Cross Trader service.