| --- |
| title: "House Oversight: Estate Documents (Nov 12) (HOUSE_OVERSIGHT_011092)" |
| source: "House Oversight: Estate Documents (Nov 12)" |
| sourceUrl: "https://www.justice.gov/epstein" |
| date: "2026-01-01" |
| category: "House Oversight" |
| eftaNumber: "HOUSE_OVERSIGHT_011092" |
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| parseTier: "external-legacy" |
| engine: "engine undisclosed (ep-nov-12.greg.technology mirror)" |
| externalSource: "greg-ep-nov-12" |
| externalLicense: "not granted" |
| externalCredit: "ep-nov-12.greg.technology" |
| externalUrl: "https://ep-nov-12.greg.technology" |
| --- |
| |
| who knows that husbands and wives will still be married in fifteen years? Who |
| knows that if they are, their careers will not have taken them to another city? |
| It seems to me that reducing the dangers of debt means reducing both term and |
| amount, and that the solution had better find ways that still accommodate the short- |
| term and long-term needs of firms and people. |
| Now let's look at how deposit banks might invest. |
| The Omnibus Fund Idea |
| If I were a couple of decades younger, I would try to create something I call an |
| omnibus fund. It starts by seeming to contradict what I just said. I said that firms |
| issue both stocks and bonds to reach different constituencies. The omnibus fund |
| would first erase that separation. In principle it would reconstruct the firm as a |
| whole, or put the pieces back together again, by assembling proportionate shares of |
| the debt and equity claims on it in a single portfolio. |
| Suppose for example that the market cap (number of shares times current market |
| quotation) for a firm's equity shares is one billion dollars, while the market cap of all |
| debt claims together in half that. Then the omnibus fund, in principle, would buy |
| each firm's equities and debt instruments in that proportion at current market |
| valuation. In practice it could realize the same effect in a simpler way. |
| The omnibus fund would be a balanced index fund. Index funds are representative |
| of all the funds in an index, such as the S&P 500, weighted again to market cap. The |
| omnibus fund would pick a still more inclusive index, say the Russell 3000 or even |
| the Wilshire 5000. It would add in a corporate bond index, since balanced means |
| mixing stocks and bonds, and cap weight the two. The object would be to model the |
| publicly-traded corporate sector as a whole. The simplest way to get there would be |
| to buy index ETFs (exchange traded funds) directly, rather than duplicating their |
| work of assembling portfolios of the underlying individual issues. |
| Chapter 8 Banks, Money and Macroeconomics 2/8/16 |
| 3 |
| HOUSE |
| _OVERSIGHT_011092 |
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