NYT: Calpers (Dem) Ouster Puts Focus on How Funds Wield Power (important)

[DeepModem Mom]

NOTE: Posts about this issue have drawn little response, but it is important. The economic power wielded by the California public pension fund (Calpers) is enormous, and its Dem activist chairman, who worked toward corporate governance, has just been ousted, and replaced by a Republican. This action, as quoted in the article, is aimed at starting the board "to work in projects more in keeping with Republican ideals."


Calpers Ouster Puts Focus on How Funds Wield Power
By MARY WILLIAMS WALSH
Published: December 2, 2004


The ouster of the president of California's public pension fund has raised questions about whether pension funds, endowments and other big activist investors will be able to keep wielding influence in corporate governance campaigns.

The change at the top of America's largest pension fund also underscores a growing awareness of the political and economic power lying largely untapped in the nation's retirement money - roughly $6 trillion - and an escalating dispute over how that power should be used.

The fund president, Sean Harrigan, was removed yesterday from the $178 billion California Public Employees Retirement System, known as Calpers, America's largest pension fund. He said his ouster was retaliation for the campaigns that he and others had been leading to change behavior at companies like Disney, Safeway, the New York Stock Exchange and Kohlberg Kravis Roberts.

Even when the initiatives failed they often pitted Mr. Harrigan, a union official, against business groups....

***

Richard Ferlauto, director of pension investment for the American Federation of State, County and Municipal Employees, said Mr. Harrigan's ouster was an early success in a campaign to wrest control of pension money from a Calpers board now controlled by Democratic trustees and put it to work in projects more in keeping with Republican ideals....


http://www.nytimes.com/2004/12/02/business/02calpers.html

[unblock]

1. this sucks. this REALLY sucks.

calpers was an instrument for corporate honesty and disclosure.
they never advocated anything that wouldn't benefit all shareholders.

this move means purveyors of corporate shenanigans can breathe a sigh of relief.

[annabanana]

2. Republican "IDEALS" !?!?

Which ones would they be. Open the safe for corporate raiders? That seems to be the overriding "Republican Ideal" in this administration.

[teryang]

5. Corruption and belligerence

A treasured heritage of a dishonest pack of carpetbaggers.

[zann725]

14. First BCCI, then Social Security, Now CALPER...

...not ONE of us will have a pension left upon retirement age. I can see it now...millions of homeless elderly on walkers, canes and in wheelchairs...living in cardboard boxes in the streets.

Then again, on the 'up-side,' not one of us will EVER be able to retire, but will be chained to the 'State' until we draw our last breath! But, come to think of it, Debtors Prisons always worked well in the past!

That plus the "redistricting" of California (and its motherlode Electoral votes) are but a few of the many reasons Gray Davis was curiously replaced by the "Govenator." :wow:

[ayeshahaqqiqa]

3. Another nail in the coffin of democracy

as the corporations and their CEOs are given a green light to loot and plunder-and what does it matter? The little guy doesn't mean a thing to these people, who are concerned only about their golden parachutes and manipulating the books so that it looks like their companies have made a profit.

[TomClash]

4. Two words: CLASS WAR

[salin]

6. Irony... suggests that working on the best interests of investments

and ensuring good returns on investments (due to things like transparency to allow good information upon which to base investment decisions)... is now AGAINST republican ideals...

tell the 'gop is better for business' crowd... their investments are best placed with those who are not in sync with republican ideas - IF they want good returns on their investments...

Love how things are taken out of context... Calpers took a drubbing with Enron losses - that made many managers (esp in the public trust as is the case with public employee funds) more aware of the need for reforms. Then again their is the opposite efforts - the buying of a losing company (Edison schools which NEVER turned a profit) by the public employees fund of Florida... wonder how that particular investment is doing for those vested in Florida's employee pension fund...

[DeepModem Mom]

7. Kicking: THIRD CA story -- this, plus possible redistricting, electoral...

vote apportionment -- in LBN today. Trying to Republicanize big blue California.

[maddezmom]

9. another kick

[zann725]

15. Ditto! (As noted above in comment #14.)

n/t

[Dover]

8. Republican ideals.......theft of the public treasury, power, control.

Californians will never see that money again.

[Blue_Tires]

10. this should surprise NO ONE

[ooglymoogly]

11. this just makes it more urgent that we intensify our boycott of

red corporations like safeway see http://www.choosetheblue.com who are stealing control of our government.

[AP]

12. This makes me sick to my stomach. Remember how those funds bought Enron

shares when Enron was crashing? The public funds, in OH, CT and FL, had republicans who helped out Enron insiders by buying their stock when the stock price was falling.

This is how Republicans make sure their friends stay wealthy, and fuck over the average taxpayer.

This is why Californians need to get rid of Arnold.

[ooglymoogly]

13. you can forget about that turncoat wife of his

being a moderating influence. they are both part of this treasonous power grab by big cooperations

[zann725]

16. I don't know anyone who voted for him.

Has anyone re-counted THOSE election returns?:think: :think:

[abelenkpe]

17. when your team can't win switch referees nt

[sandnsea]

18. Privatized Social Security

Imagine how little power we'll have over corporations if everybody's money is invested. Worst idea ever.