Friends and family

Here is an article from the Washington Post in 1994. The White House yesterday released documents showing that First Lady Hillary Rodham Clinton parlayed a $1,000 investment into nearly $100,000 in less than a year by trading in cattle futures and other commodities in 1978 and 1979. When most people saw that they suspected something not right but nothing was done about it. How did this happen. One possible answer is a common practice call friends and family accounts. A hedge fund manager sets up an investment account and it has two parts, one called the public account and one called the family account. The companies where the stock goes up and the trades made money were assigned to the family account and the others are lumped into the general account. This is only one of the ways that traders in the know make money and if you are a small investor you are not playing on a level field.