The Berkeley Planet reports that since 2003 Gerald Parsky, Richard C. Blum, and Paul Wachter, all financiers themselves have steered UC investments and pensions towards risky private equity and real estate instruments. In order to maintain the appearance of propriety, they got UC to hire private money managers with high fees. Not only were private managers paid handsomely, their investment choices have suffered much more than blue chip stocks and bonds. $2 billion were steered toward risky financial instruments and the losses that UC suffered are negatively impacting its retirement and endowment funds. Blum, once again, reveals himself to be a beneficiary of his regental position: after being appointed to the board in 2002, $745 million of UC money was invested in seven private equity deals involving either Blum or his firm, Blum Capital Partners. People, offense is the best defense. Kudos to Berkeley Planet for excellent investigative reporting. In July, the LA Times ran Mike Hiltzik's column covering UC Regents' conflict of interest news.
5 hours ago