Wall Street is Taking Over America's Pension Plans

Murtaza Hussain
The Intercept
November 25, 2014

Coverage of the midterm elections has, understandably, focused on the shift in political power from Democrats toward Republicans. But behind the scenes, another major story has been playing out. Wall Street spent upwards of $300M to influence the election results. And a key part of its agenda has been a plan to move more and more of the $3 trillion dollars in unguarded government pension funds into privately managed, high-fee investments — a shift that may well constitute the biggest financial story of our generation that you’ve never heard of.

Illinois, Massachusetts, and Rhode Island all recently elected governors who were previously executives and directors at firms which managed investments on behalf of state pension funds. These firms are now, consequently, in position to obtain even more of these public funds. This alone represents a huge payoff on that $300M investment made by the financial industry, and is likely to result in more pension money going into investments which offer great benefits for Wall Street but do little for the broader economy.

Click here to read more at The Intercept.


Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

Carhaulers to Vote: Jack Cooper’s Chapter 11 Reorganization as a New Company

UPDATED August 6, 2019.     Jack Cooper’s 2200 Teamsters will vote on a contract proposal for a new company, which would take over Cooper’s assets. Wages and health benefits would remain the same: the major change would be a reduction in the new employer’s pension contribution.

Carhaul Members to Vote on Concessions at Jack Cooper Transport

Teamsters employed under the national carhaul contract by Jack Cooper Transport are going to face a hard decision next week, as proposed concessions will be unveiled.

View More News Posts