Skip to content

Congress Needs More Common Sense and Less Stupid Regulations

June 25, 2010


The below story is the latest and greatest way government is going to manage itself.

Note to NY, taxpayers should not be paying for pension plans other than their own.  Everyone should be responsible for their own retirement.  If that happens you wouldn’t have the below problem. 

Then again whats a few hundred billion dollars of your money wasted on bad investments and a government that will be taking money from private sector taxpayers (reminder private sector taxpayers are NOT evil – they fund all the public sector) to fund exorbitant promises and unfunded liabilities. 

Thanks Mr. Cuomo, you really know how to look out for the litle guy.

Motto of the day: Don’t Count Your Pensions Before They Hatch (or you turn 591/2)*

Who over the age of 10 gives their age in 1/2 years?

June 24, 2010, 12:30 PM EDT


By Jesse Westbrook

June 24 (Bloomberg) — U.S. regulators are poised to restrict investment advisers from giving money to politicians to win pension business in response to abuses in an industry that oversees $2.4 trillion of public retirement funds.

Securities and Exchange Commission members will vote June 30 on rules aimed at preventing hedge funds and private-equity firms from trying to influence public officials who award pension contracts, the agency said in a statement on its website today. Last year, the SEC proposed that investment firms be barred from managing pension-fund assets for two years if their executives gave money to a politician with sway over contracts.

The SEC and New York Attorney General Andrew Cuomo have been probing state pension-fund corruption for more than a year. Quadrangle Group LLC, the private-equity firm co-founded by Steven Rattner, agreed in April to pay $12 million to resolve allegations it paid kickbacks to a New York political consultant to win an investment from a state retirement fund.

Rules considered by the SEC last July would have barred use of so-called placement agents, individuals and firms paid by investment advisers to help them gain access to pension money. The proposal followed allegations that New York officials arranged for a fund to invest $5 billion with money managers who paid political advisers associated with placement agents.

Credit-Suisse Group AG, in a September letter to the SEC, said a ban would eliminate the “critical capital-formation function” that brokerage firms provide as placement agents.

‘Cost-Effective’ Competition

Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, said in a February letter to the SEC that banning placement agents risked eliminating the only “cost- effective way for smaller funds” to compete with bigger rivals in winning contracts to manage pension-fund assets.

The SEC moved away from the ban in December when Andrew Donohue, head of the agency’s division of investment management, asked the Financial Industry Regulatory Authority whether it could restrict brokerages from engaging in so-called pay-to-play practices as an alternative.

Finra Chief Executive Officer Richard Ketchum responded in March, telling Donohue that rules aimed at keeping securities firms from engaging in “improper pay-to-play practices” are a viable alternative “to a ban on certain private-placement agents.”

–Editors: Gregory Mott, William Ahearn

To contact the reporter on this story: Jesse Westbrook in Washington at

To contact the editor responsible for this story: Lawrence Roberts at;


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: