Are These Cd Rates Too Good To Be True?

摘要

Financier R. Allen Stanford makes investors an enticing offer: He sells supposedly super-safe certificates of deposit with interest rates more than twice the market average. His firm says it generates the impressive returns by investing the CD money largely in corporate stocks, real estate, hedge funds, and precious metals.rnBut skeptical federal and state regulators are now taking a hard look at Stanford's operation-especially those CDs, whose underlying investments seem questionable. Over the past 12 months, the stock market and hedge funds have lost huge amounts of value even as Houston-based Stanford Financial Group continued to pay out above - average returns and claimed to have boosted the assets it oversees by 30%, to more than $50 billion.