Category Archives: Money Matters

Behind The Money: George Soros

George Soros is one of the most famous investors of the modern era. He made almost two billion dollars in a single trade in 1992 and boasted a 30 percent annual return in his Quantum Fund until he retired in 2000. Since then, he has used his vast personal wealth for personal and political causes in American politics, as well as philanthropy. In this post, we will describe his background, financial accomplishments, and recent activities.
Soros is Hungarian by origin. He was born in Hungary in 1930, but left the country after World War II and moved to London, where he attended the London School of Economics. He got his first job in finance in London. He later moved to New York City and began rising through the ranks of a variety of banks. In 1973 Soros founded his own company. He ran that company and oversaw day to day trading operations for about 18 years, posting returns over 30 percent in every year. He began transitioning out of day to day work in the 1980s, but remained connected to finance.
In 1992, Soros made his most famous trade. The Bank of England was attempting to prop up the price of its currency, the pound sterling, by using its foreign reserves to buy pounds on the foreign exchange market. The Bank’s goal was to fix the exchange rate between the British pound and German mark in an early precursor of the euro. However, the British economy was weaker than the German one, and so Soros and other traders bet that the pound would fall in value. In the end, Soros won and made nearly two billion dollars, and Britain had to abandon its goal for a fixed exchange rate. Soros later made a similar bet against the Thai baht. The pound trade cemented his reputation as a powerful speculator whose trades could affect the fate of nations.
Through the 1990s, Soros distanced himself from finance, and by 2000 he had retired completely. For the fifteen years since, Soros has focused on spending his wealth on politics and philanthropy. Soros favors liberal or progressive causes, and has been outspoken about political issues ever since his retirement. He founded the Open Societies Foundation to focus his philanthropic efforts.

Regulations, Research and Your Money

Finance Law relates to any policy, regulation, including all forms of rules governing financial transactions where one member of a group raises money through borrowing, stock sales, bonds or any other way of investment. Such types of laws include bankruptcy, securities laws, antitrust that protect individual investors or small businesses.

Finance Law in the United States can become quite complicated for the average person, and most people are not acquainted with the laws until they find themselves in difficult situations and need the advice of a lawyer specializing in the area of finance law.

One thing to remember is most states have their laws specific to their states.

Wage Garnishment Laws are state-by-state.
Divorce laws are state-by-state
Check Cashing and Payday Loans have hefty fees and other rules that need to be considered.

The organizations related to finance law starts with the Board of Governors of the Federal Reserve System. The members of the board are comprised of the FOMC, Federal Reserve Banks (located in the US), private member banks and an advisory council.

Resources are available for assisting the public to understand the basics and provide a financial education. A website MyMoney.gov is a government website assisting anyone to better understand their personal finances from buying a home, managing their personal funds and checkbook to investing in a 401K retirement plan. The purpose of this website is to help the public make better choices, explain the rules of finance, and products available as a resource for learning, and acquaint the public with additional information and helpful websites and become a better-informed member of society.

Sam Tabar, an attorney in New York City, specializing in finance law, also giving advice on investing. Tabar is considered an expert in business development and legal matters, member of the New York Bar Association, a graduate of Columbia University and the University of Oxford. Tabor offers advice to investors – Avoid poorly managed funds if you expect a reasonable return on your investment. Do your research, the more the better. Focus on commodities that have been and are being managed well and avoid the investments in any nation with a history of mismanagement that comes from commodities of any type.

There is an old saying that holds true for many things in life. The carpenter’s rule “Measure twice and cut once”. There isn’t a second chance in most instances for a redo.