This post is part of a feature in which we wonder whatever happened to some notorious financial felons. See all 17.
Just say it's been "a long and winding financial road" for billionaire investor George Soros -- but one that's had more smooth traveling than detours.
True, the Hungarian-born Soros was fined $2 million by a French court in 2002 for insider trading, which France's highest court upheld on an appeal on June 14, 2006, but other than that transgression, critics would be hard pressed to find other operational/financial flaws.
Soros is perhaps best known for one of the most cunning and successful short-term plays in investment fund history. On September 16, 1992 Soros sold short more than $10 billion worth of the British pound, after the Bank of England failed to raise interest rates. Soros' profit on the ensuing fall in the pound: about $1.1 billion.
Further, the other dimensions of Soros life that some critics would cite -- his social activism and philanthropy -- are viewed as positives by many others. Soros has promoted nonviolent democratization in Central and Eastern Europe, and other states, and pledged hundreds of millions of dollars to numerous universities globally and to antipoverty programs in Africa, among many other charitable acts.
Soros: A mixed capitalist
Moreover, while conservatives, market absolutists, and others take issue with his generally left-of-center politics, these again are virtues for those who see limits to market-based systems, as well as the need for controls, rules, and transparency for markets to operate effectively.
Soros can perhaps best be described as a mixed capitalist who sees both an activator and regulator role for the state to check market abuses and to maintain an adequate social welfare state in the face of the market's harshness. Since 1981, that view has been largely in the minority in U.S. financial and public policy circles, but it has returned to prominence in 2008, given the failure of the market absolutist paradigm, as a result of the global financial crisis -- a crisis that has required massive government intervention -- in the U.S. and internationally -- to resolve.
Today, Soros allocates his time between serving as chairman of the $19 billion Soros Management Fund, a hedge fund, and the Open Society Network, a private operating and grant-making organization Soros founded that seeks to shape public policy to promote democratic governance, human rights, and economic, legal, and social reform. In mid-November, Soros testified before the U.S. House Committee on Oversight and Government Reform, arguing for needed re-regulation of the hedge fund sector, but against punitive measures that would hamper rather than assist the global economic recovery.
At the very least, the current global financial crisis demonstrates that the critics were wrong about Soros' arguments regarding the flaws and deficiencies of markets; at best, he has been well ahead of the curve, both philosophically and financially.
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Reader Comments (Page 1 of 1)
11-19-2008 @ 7:32AM
John Wharton said...
And Soros remains a few steps ahead of the law or rather has handlers who payoff the govenrments who are after him.
He is not welcome in my country Malaysia for his part in taking the Malaysian economy down in the 90's for his personal gain. With the Pound sceme he was working with an entity that had some equity; with Malaysia, he took down a country just beginning to get on its feet after gaining Independence in 1957.
He also lost alot of money in bankrolling the Democratic campaign against Bush in the previous election - but money doesn't always win
11-25-2008 @ 11:12AM
r carr said...
Nice to hear a comment from someone who actually knows something. Thanks Mr. Wharton
11-20-2008 @ 9:32PM
MIKE said...
HES A WORLD SOCIALIST WANTS AMERICA AND SUPPORTS THE DEMS, EVERYONE KNOWS THEY ARE THE SAME PARTY TAKE ,TAKE ,TAKE THE NEW REPUBLICRATS. NO ACCOUNTABILITY SINCE LBJ S GREAT SOCIETY,SPEND OUR SS. DONT BALANCE THEIR OWN CHECKBOOKS. LIVE FOR TODAY NOT THE FUTURE. TIME FOR THE SECOND BOSTON TEA PARTY BEWARE
11-21-2008 @ 1:17AM
Don said...
This is the same George Soros who feels no guilt for his participation in persecuting Jews in his native Hungary. http:// www.mail-archive.com/osint@yahoogroups.com/msg57503.html
Admittedly, he was only 14 years old when his father bribed a Nazi government official to take George in as his alleged Christian godson. He says that this is when his character was made. He learned "That one should think ahead. One should understand and anticipate events." To explain his lack of remorse he stated " But there was no sense that I shouldn't be there, because that was–well, actually, in a funny way, it's just like in markets–that if I weren't there–of course, I wasn't doing it, but somebody else would–would–would be taking it away anyhow."
Philanthropist? Human rights supporter?
I doubt it.
11-22-2008 @ 9:38AM
eeh said...
i am apathetic to all// kay soros soros,,lol,,,lol,,,i feel bad for all your soros,,lol,,,lol,,,lol,,,poor saps,,,shat app!!!!!!,,wow,,im funny !
12-04-2008 @ 10:11PM
mark said...
George Soros is a worthless POS. He calls the shots for the Democrap-Satanist party.
12-05-2008 @ 8:44AM
nick said...
Now here is a croney that should be in jail right now. This slime bag along with a few others is the person who bought many Democrats. When Obama is done he will make him a knight. Sure hope he gets alot of jail time down the road.