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.

Get Advice Join TDU Donate

Recent News

Herman Benson: A One-Man Army Working to Revitalize the Labor Movement

My friend Herman Benson died yesterday, just shy of his 105th birthday. He was an inspiration, a leader, and sometimes a critic for so many of us working to put the membership front-and-center in the Teamsters and in the whole labor movement.

YRCW Gets $700 Million CARES Act Loan!

The US Treasury will loan YRCW $700 million under authorization from the CARES Act. $350 million will be used to make H&W and pension benefit payments, and the other $350 million will go to investment in tractors and trailers.

View More News Posts