Edward Siedle: Wall Street Cockroaches Infest State Pensions, Thrive In the Darkness
When transparency is denied at state pensions, you should presume someone has something to hide.
In pension matters, there is never any justification for keeping secrets from taxpayers and pensioners whose retirement savings are at risk. After all, it’s your money.
Less transparency in pensions results in less accountability and greater looting. Therefore, to protect your retirement, you should do everything in your power to promote transparency at your pension, paying particular attention to the most secretive investments, such as private equity, private credit, hedge, venture and real estate funds.
EDWARD SIEDLE
JUN 16, 2023
Wall Street cockroaches infesting state and local pensions prosper—thrive—in darkness. While “sunshine is the best disinfectant,” public pensions are shadier than ever today.
Transparency in government has long been acknowledged in America as essential to a healthy democracy. On the federal level, the Freedom of Information Act opens up the workings of government to public scrutiny, giving citizens information they need to evaluate and criticize government decision-making.
Share Pension Warriors by Edward Siedle
All 50 states also have public records laws which allow members of the public to obtain documents and other public records from state and local government bodies. State public records laws are built upon the United States’ historical position that the records of government are “the people’s records.”
Transparency is also critical to the prudent management of trillions of dollars invested in America’s state and local government pensions. Indeed, the single most fundamental defining characteristic of our nation’s public pensions is transparency. Of all pensions globally, our public pensions—securing the retirement security of nearly 15 million state and local government workers, funded by workers and taxpayers—are required under our public records laws to be the most transparent.
The single most fundamental defining characteristic of our nation’s public pensions is transparency. Our public pensions—securing the retirement security of nearly 15 million state and local government workers, funded by workers and taxpayers—are required under our public records laws to be the most transparent.
Public pensions primarily invest government workers’ retirement savings in securities and funds which are regulated on the federal and state level. Our nation’s securities laws require that securities issuers and fund advisers register with regulators, disclose financial and other significant information to all investors, including public pensions, as well as prohibit deceit, misrepresentations, and other fraud. The statutorily mandated disclosure information is commonly provided in the form of prospectuses, offering memoranda, annual reports, performance reviews and other documents.
Absent full disclosure by investment firms to pension boards and investment staffs, these individuals cannot fulfill their fiduciary duty to diligently safeguard pension assets. Full disclosure of investment information by the pension to the public is necessary for the stakeholders to understand the investment program, as well as evaluate whether pension fiduciaries are prudently performing their duties.
Thus, in public pension matters, we are concerned with two levels of transparency:
First, under the securities laws, issuers and investment advisers must fully disclose material information to pension boards and investment staffs regarding pension investments. Second, under state public records laws, all of the workings of the pension must be open to full public scrutiny, including, but not limited to, investments.
In public pension matters, we are concerned with two levels of transparency:
First, under the securities laws, issuers and investment advisers must fully disclose material information to pension boards and investment staffs regarding pension investments.
Second, under state public records laws, all of the workings of the pension must be open to full public scrutiny, including, but not limited to, investments.
Alarmingly, my forensic investigations over the past two decades have revealed that public pensions in states such as California, Florida, Tennessee, Rhode Island, North Carolina, and Ohio have long abandoned transparency, choosing instead to collaborate with Wall Street firms to eviscerate state public records laws and avoid accountability to stakeholders. Predictably, billions that could have been used to pay government workers retirement benefits have been squandered over time as transparency has ceased to be a priority.
Wall Street cockroaches prosper—thrive—in the darkness. Despite global support for greater transparency, public pensions are actually becoming less transparent. Ironically, there is less transparency regarding public funds today in the Information Age, despite computers and the internet.
Less transparency in pensions results in less accountability and greater looting. Therefore, to protect your retirement, you should do everything in your power to promote transparency at your pension, paying particular attention to the most secretive investments, such as private equity, private credit, hedge, venture and real estate funds.
Wherever transparency is denied, you should presume that someone has something to hide.
Wherever transparency is denied, you should presume that someone has something to hide.
Read the rest of the article here.
posted by Kathie Bracy at 2:35 PM
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