RH Jones: STRS should get our money back

From RH Jones, March 24, 2009
Subject: Fw: Let's hear it for CalPERS & CalSTRS! Will STRS join in?

John & Dennis,

As I remember, during Dyer's last months in the STRS directorship he put out a notice to hire a new expensive lawyer to serve on the OH STRS staff. I think the lawyer, in fact, was hired; therefore OH STRS should be able to also be in the forefront of the fight to get our money back from all the stocks, bonds, and whatever past investments from all the companies that have shown to have been using false sales rhetoric for their own illegal gain.

Life is getting desperate with us retirees. WE can no longer afford any more cuts. These are cuts in healthcare/Rx, COLA ( without compounding), or any other cuts. We have already been cut "to the bone".

We certainly have been fighting for years to avoid this downturn in our STRS funding. WE have begged and pleaded for a Board at STRS to listen to us only to be held in contempt. Repeat, and repeat, and it still fails to change the outdated "thinking". Nevertheless, I, for one will keep trying. We hope many,many, others will join us until a proper retirement is possible for all past and present educators. The future is bright as we are a band of brothers/sisters coming together to better our lot.

This is my thinking,

RHJones, retired STRS member

From John Curry, March 24, 2009
Subject: Let's hear it for CalPERS & CalSTRS! Will STRS join in?

Wall Street Journal
MARCH 24, 2009

US Pension Funds File To Lead Suit Against Bank of America

HONG KONG (Dow Jones)--Two of the largest state public pension funds in the U.S. have filed to lead a class action suit against Bank of America Corp. (BAC), alleging that the bank's management misstated or omitted important information about Merrill Lynch's financial condition.

California Public Employees' Retirement System, or CalPERS, and California State Teachers Retirement System (CalSTRS) said they are protecting the financial security of over 2 million members. The two filed a joint motion in the District Court of the Southern District of New York Monday

"Despite these challenging economic times, we can't give corporations a pass on their obligations to shareholders," said Jack Ehnes, CalSTRS chief executive officer, in a prepared statement.

"By moving to be appointed lead plaintiffs, we're acting to supplement government enforcement of securities laws at a critical time for our nation's economy. We've taken this step to hold the board and its management responsible to their owners," he continued.

A Bank of America spokeswoman in Singapore declined to comment Tuesday.

Bank of America, based in Charlotte, North Carolina, acquired Merrill Lynch at the end of 2008 after shareholders approved the deal. Since then, there's been widespread outrage that former Merrill Lynch Chief Executive John Thain doled out $4 billion in year-end bonuses on the eve of the acquisition.

"Shareowners did not have complete or accurate information prior to approving the merger, and the failure of Bank of America to provide it sent the stock price down dramatically," CalPERS Board President Rob Feckner said in a statement.

Bank of America's stock price has fallen by more than 40% since the beginning of the year, closing at US$7.80 on Monday.

The U.S. House of Representatives Thursday passed a tax legislation that would impose a 90% surtax on bonuses granted to employees who earn more than $250,000 at companies that have received at least $5 billion from the government financial rescue program, also known as TARP. The bonus tax, if passed as is, would be retroactive to December 31, 2008, leaving the Merrill bonuses out of the scope of the law. Merrill typically paid out year-end bonuses in January, but paid them before the end of the year prior to the acquisition by Bank of America.

CalPERS has a reputation for shareholder activism. In recent years, the US$173.9 billion fund has expressed opinions on executive, and stock options and nomination of board directors at companies such as United Health Group Inc. (UNH), HSBC Holdings PLC (HBC) and Dollar Tree Stores Inc. (DLTR).

"CalPERS is going to play a natural leadership role in the resolution of the financial crisis," Anne Simpson, Calpers' new head of corporate governance, told Dow Jones Newswires in February. "If more funds had the level of commitment CalPERS has to the rights and responsibilities of owners, we'd have far better levels of disclosure," she added.

(Jessica Hodgson contributed to this story.)

-By Ellen Sheng, Dow Jones Newswires; 852-2832-2336; ellen.sheng@dowjones.com