Derek Ray 7:41 p.m., March 13
Local Lawyer Explains Profit in Federal Lending Program
The New York Times revealed today (Dec. 3) a list of Americans who profited from a Federal Reserve lending program launched in November of 2008 to support the market for student, auto, credit card, and small business loans. One of the few who would talk to the Times was Jeffrey Krinsk, a distinguished plaintiff lawyer in San Diego. He said he made a profit of about 13%, or more than $300,000 on a $2 million investment in less than 18 months. "The risk being assumed by investors was generally far less than the risk that was perceived by commentators who hadn't taken time to look through the extensive documentation associated with the program," said Krinsk. "It was actually less esoteric, less risky, than other investments I've made." Among others making such investments were computer magnate Michael S. Dell, Wall Streeters John Paulson and Julian Robertson, and Kenneth H. Dahlberg, who as a volunteer in Richard Nixon's re-election campaign was a minor figure in Watergate.
Krinsk has been involved in some high-profile San Diego cases. In the 1980s, he charged that there were conflicts of interest on the board of Fabulous Inns of America, and was instrumental in ousting the board. He came to San Diego as an attorney for Hang Ten International, which owned and licensed a valuable logo, and eventually became chief operating officer. Krinsk currently pursues privacy-related lawsuits.