Allianz Structured Alpha funds lost $7 billion of investor money in March 2020.
Gregoire Tournant, the portfolio manager, has been arrested.
The firm pleads guilty and will pay $5.8 in fines and restitutions.

Allianz Structured Alpha funds lost $7 billion of investor money in March 2020.
Gregoire Tournant, the portfolio manager, has been arrested.
The firm pleads guilty and will pay $5.8 in fines and restitutions.
Alternatives are complex and opaque. requiring both investment and operational due diligence.
New technologies now permit investment analysis, fraud detection, and operational risk measurement.
MSCI is removing the Russian stock index at zero, implicitly valuing the entire Russian equity market at nil. And it is correct.
Russian stocks are literally worth nothing.
With massive withdrawals and no central bank to come to its rescue, Sberbank Europe is defaulting.
Its London-listed stock is down 70%. The holding is owned in majority by the Russian government.
Putin’s blitzkrieg plans for a regime change have met an efficient defense. He lacks air superiority and his logistics are deficient. His panzers have stopped. Most cities are under Ukrainian control. Meanwhile, international sanctions are swifter and much heavier than expected. He has protesters at home.
Did he get into an expensive quagmire?
$700,000 on decorating, $345,000 on jets and yachts, $136,000 on casinos and nightclubs, $6.9 m in credit card payments…
The licensing rights didn’t exist. It was a movie rights Ponzi scheme. $690 millions of it.
As usual, many victims are middle-class and retirees, who are now in dire need.
BlackRock just passed $10 trillion in assets under management.
It is a BIG number.
China Evergrande Group has officially defaulted on $82 m of coupons.
Kaisa Group failed to repay a $400 m bond a few days before.
What happens now?
WSJ: The descent into default “is unlikely to cause much market turbulence.”
No doubt, a $300 bn default will be a walk in the park…???
The intervention orchestrated by the Turkish Central Bank to sustain the Lira has turned ineffective. The Lira fell further.
Erdogan has therefore replaced his finance minister with an even more loyal executive.