Goldman Sachs is a powerhouse to be reckoned with when it comes to U.S. financial institutions. It is thus no surprise that Democrat presidential candidate, Hillary Clinton’s son – in – law looked to the company when he wanted to set up a hedge fund back in 2011.
The fund in question was established by March Mezvinsky, the husband of Chelsea Clinton, along with two other partners. The Chief Executive Officer of Goldman Sachs, Lloyd Blankfein had a personal stake in the fund and allowed his involvement in the fund to be used as a marketing strategy to the fund’s benefit.
Unfortunately for the participants in the investment, the returns from the fund where far from desirable. Early this month, Mezvinsky had no choice but to axe one of the fund’s investment wings named Eaglevale Hellenic Opportunity, following a 90 percent loss incurred after pitting money on the recovery of embattled Greece. Reports show that similar misfortune has also befallen the fund itself.
Because of the nature of the investment, a private fund, there are very few requirements it has to fulfill in terms of disclosing its dealings to the public. In a bid to uncover more about the failing fund, Hillary Clinton was asked about it at a recent campaign event in San Francisco.
As the questions fell on deaf ears, attention moved to Nick Merrill, the campaign press secretary to see if any answers could be had. The secretary responded, “I don’t know, has it been reported?” He did however promise to give word if anything came up.
This move by Goldman Sachs to invest in Eaglevale, speaks of a pattern that has emerged in which the finance house has steadily moved towards strengthening their ties with the Clintons. To date, the company has paid $675,000 to the Democratic presidential hopeful for personal speaking services, while having shelled out a staggering $1,500,000 to the former American president, Bill Clinton for the same service. They have also shown their charitable side, donating an amount estimated between $250,000 and $500,000 to the Clinton Foundation.
Prior to marrying Chelsea back in 2010, Mezvinsky had been a Goldman Sachs employee and so naturally decided to set up the Eaglevale fund with two former colleagues from the bank. According to documentation obtained from the Securities and Exchange Commission, there was a minimum investment fee of $2 million dollars for the fund. Hillary Clinton has evaded the nature of her relationship with the investment bank.