Sunday, April 24, 2016

Elizabeth Warren busts Goldman-Sachs for handling of union pensions

Goldman-Sachs and Northern Trust ​charged the Teamsters Union $41 million in fees for handling the beleaguered Central States Pension Fund. The same pension fund where 400,000 retirees are facing drastic cuts. 

What did the fund managers do to earn their millions? They put the fund in unnecessary danger through risky investments.

While part of the Teamsters issues have to do with a declining union workforce — resulting in fewer employers contributing into the fund — Smith says the financial market collapse and the riskier-than-average investments made by the fund contributed to losses.

Or as Warren put it.

The decisions that Goldman and Northern made, along with an Act slipped into the 2014 budget, directly led to this.

James Lambert, 69, a former trucker, from Randolph, Ohio, was told his $2,200 monthly pension payment would be slashed to $1,200.

Bob Berg, 61 … was informed that his monthly payment would drop from $3,000 to $2,200.

And Judy Weeks, 62, ... would drop from $3,000 to $1,258.

Warren speaking on the Central States Pension Fund.

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