SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
In 2012, Chicago teachers rocked the city with their historic strike. Yet their pensions could still be on the line. (Credit: flickr/cc/Sarah-Ji)
6 Ways Wall Street Is Hosing Chicago Teachers
During Andrew Cuomo's tenure as attorney general of New York, he noted, "In New York, the biggest pool of money is the state pension fund." This is true with public pension funds across the nation--and Wall Street firms have leaped to take advantage of the bounty, often in unsavory ways. Over the last five years, the Securities and Exchange Commission (SEC) has routinely unearthed "pay-to-play" scandals, in which overseers of pension funds make investment choices based on personal gain.
Aug 06, 2014
During Andrew Cuomo's tenure as attorney general of New York, he noted, "In New York, the biggest pool of money is the state pension fund." This is true with public pension funds across the nation--and Wall Street firms have leaped to take advantage of the bounty, often in unsavory ways. Over the last five years, the Securities and Exchange Commission (SEC) has routinely unearthed "pay-to-play" scandals, in which overseers of pension funds make investment choices based on personal gain.
In most cases, politicians control the investment-making decisions at pension funds. A select few, however, are controlled by their members--meaning they could invest in projects for the public good on Main Street rather than private investment funds on Wall Street. One such fund is the Chicago Teachers' Pension Fund (CTPF), a nearly $10 billion pool charged with assuring the retirement security of tens of thousands of education professionals. Despite a Board composed of 12 member-elected trustees, however, Wall Street still has its hands in the kitty. Here are six ways America's biggest investment firms have the potential to sink Chicago teachers--and just how the CTPF board can stop that from happening.
1. Underperformance
Historically, pension funds have been extremely conservative investors out of caution for their members' finances. Only in the past 20 years have they amped up their allocations to higher-risk endeavors. And as Wall Street has quaked, so too have member livelihoods.
Join Us: News for people demanding a better world
Common Dreams is powered by optimists who believe in the power of informed and engaged citizens to ignite and enact change to make the world a better place. We're hundreds of thousands strong, but every single supporter makes the difference. Your contribution supports this bold media model—free, independent, and dedicated to reporting the facts every day. Stand with us in the fight for economic equality, social justice, human rights, and a more sustainable future. As a people-powered nonprofit news outlet, we cover the issues the corporate media never will. |
© 2023 In These Times
Matthew Cunningham-Cook
Matthew Cunningham-Cook is a freelance journalist who has written for The Nation, Labor Notes, and the Public Employee Press.
During Andrew Cuomo's tenure as attorney general of New York, he noted, "In New York, the biggest pool of money is the state pension fund." This is true with public pension funds across the nation--and Wall Street firms have leaped to take advantage of the bounty, often in unsavory ways. Over the last five years, the Securities and Exchange Commission (SEC) has routinely unearthed "pay-to-play" scandals, in which overseers of pension funds make investment choices based on personal gain.
In most cases, politicians control the investment-making decisions at pension funds. A select few, however, are controlled by their members--meaning they could invest in projects for the public good on Main Street rather than private investment funds on Wall Street. One such fund is the Chicago Teachers' Pension Fund (CTPF), a nearly $10 billion pool charged with assuring the retirement security of tens of thousands of education professionals. Despite a Board composed of 12 member-elected trustees, however, Wall Street still has its hands in the kitty. Here are six ways America's biggest investment firms have the potential to sink Chicago teachers--and just how the CTPF board can stop that from happening.
1. Underperformance
Historically, pension funds have been extremely conservative investors out of caution for their members' finances. Only in the past 20 years have they amped up their allocations to higher-risk endeavors. And as Wall Street has quaked, so too have member livelihoods.
Matthew Cunningham-Cook
Matthew Cunningham-Cook is a freelance journalist who has written for The Nation, Labor Notes, and the Public Employee Press.
During Andrew Cuomo's tenure as attorney general of New York, he noted, "In New York, the biggest pool of money is the state pension fund." This is true with public pension funds across the nation--and Wall Street firms have leaped to take advantage of the bounty, often in unsavory ways. Over the last five years, the Securities and Exchange Commission (SEC) has routinely unearthed "pay-to-play" scandals, in which overseers of pension funds make investment choices based on personal gain.
In most cases, politicians control the investment-making decisions at pension funds. A select few, however, are controlled by their members--meaning they could invest in projects for the public good on Main Street rather than private investment funds on Wall Street. One such fund is the Chicago Teachers' Pension Fund (CTPF), a nearly $10 billion pool charged with assuring the retirement security of tens of thousands of education professionals. Despite a Board composed of 12 member-elected trustees, however, Wall Street still has its hands in the kitty. Here are six ways America's biggest investment firms have the potential to sink Chicago teachers--and just how the CTPF board can stop that from happening.
1. Underperformance
Historically, pension funds have been extremely conservative investors out of caution for their members' finances. Only in the past 20 years have they amped up their allocations to higher-risk endeavors. And as Wall Street has quaked, so too have member livelihoods.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.