In Defense of Dan Halutz

August 22, 2006 - 3:58 PM by Allison

The army chief of staff has been under a lot of fire since it was revealed in a newspaper that he sold off tens of thousands of dollars worth of investments on the eve of the war with Hezbollah, following their incursion and kidnapping of two soldiers. Imshin links to a Hebrew report detailing exactly what happens, and suggests that Halutz isn’t exactly the opportunistic guy that the earlier report suggested:

I’m so tired of everyone ganging up on Chief of Staff Dan Halutz for selling shares at the beginning of the war. It is so incredibly taking things out of context. I would have expected bloggers to have seen right through this obvious media manipulation.

The really disgusting thing about the affair was the leak from the bank. Is it okay for people’s private financial affairs to be publicised like this and no one pay the price?

So here’s another take on the story (Hebrew link): On the 11th May, a person, who just happens also to be chief of staff of the IDF, opens an investment portfolio, making all the mistakes in the book, such as buying when markets are peaking, and soon suffering heavy losses, when markets collapse.

On 11th June he hurriedly sells two thirds of his portfolio at great loss. At the end of June he contacts the bank intending to sell the rest of his portfolio, but Gideon, his investment advisor, suggests he waits a bit longer.

On the morning of the 12th July what he has left is three trust funds, two of them foreign equity funds, focusing on European and American stock markets, and some Teva shares.

Now Dan halutz is a busy man, he has always been a busy man, well used to conducting his private business, on the run, in between far more urgent and pressing business of running the air force/army.

First thing he does when he gets to the office that morning is to tell his secretary to get the bank on the phone for him. Israeli banks being what they are, and taking in account that all hell lets loose in the meantime, she only manages to get the bank for him at noon time.

The verdict: A terrible investor, but definitely not a corrupt chief of staff. It’s actually quite a relief that an army man should have so little business acumen. People should do what they’re good at.

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