The Wall Street Journal had a report this morning about former bank executives starting up “blind pools.” Like “dark pools,” which TBM explained recently, these things sound murky. How do “blind pools” work? Like this: Investors commit money to a certain fund. The people in charge of that fund then decide how to invest their money, often leaving investors in the dark about where it ends up. In this case, people are forming blind pools to buy up failed banks in FDIC-run auctions. If the bid is accepted, then that now-struggling bank’s future performance will determine how much the investors win or lose. Not surprisingly, jumping into a “blind pool” can be a hazardous move, so best to swim at your own risk.