Is Pimco Doing This For Free?
"One of the many concerns expressed on Capitol Hill this week about
the Treasury Department’s $700 billion rescue plan was how to keep the
Wall Street firms that helped to create the crisis from making a
killing if they are hired to help contain it.
William H. Gross, the manager of the country’s largest bond mutual fund, has a solution for that: He is offering to do it free.
“We have a large and brilliant staff that can analyze and has
analyzed subprime mortgages that can help the Treasury out,” Mr. Gross,
the co-chief investment officer for Pacific Investment Management
Company, said Tuesday in an interview at the company’s headquarters
here. “And I’d even be willing to say that if the Treasury wanted to
use our help, it would come, you know, free and clear as long as every
other firm would do the same.”
I am curious as to if this is gratis. When Bill Gross offered to do this for free, was he only discussing the TARP, or did it apply to all aspects of the bailout plan?
Inquiring minds want to know . . .
Gross to Manage TARP for Free ? (September 25, 2008)
Pimco Tapped to Manage Fed’s CPFF
BRIAN BLACKSTONE and MEENA THIRUVENGADAM
WSJ, October 15, 2008