Article: Looting the Pension Funds All across America, Wall Street is grabbing money meant for public workers

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Looting the Pension Funds

All across America, Wall Street is grabbing money meant for public workers

Matt Taibbi

Rolling Stone, 10 October 2013

Raimondo’s strategy for saving money involved handing more than $1 billion – 14 percent of the state fund – to hedge funds, including a trio of well-known New York-based funds: Dan Loeb’s Third Point Capital was given $66 million, Ken Garschina’s Mason Capital got $64 million and $70 million went to Paul Singer’s Elliott Management.

The state’s workers, in other words, were being forced to subsidize their own political disenfranchisement, coughing up at least $200 million to members of a group that had supported anti-labor laws.

This is the third act in an improbable triple-fucking of ordinary people that Wall Street is seeking to pull off as a shocker epilogue to the crisis era.

Baker reported that, had public pension funds not been invested in the stock market and exposed to mortgage-backed securities, there would be no shortfall at all.

It’s a scam of almost unmatchable balls and cruelty, accomplished with the aid of some singularly spineless politicians. And it hasn’t happened overnight. This has been in the works for decades, and the fighting has been dirty all the way.

Union leaders all over the country have started to figure out the perils of hiring a bunch of overpriced Wall Street wizards to manage the public’s money.

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Article: How “Activist Investors” David Einhorn and Dan Loeb Brought Their Special Talents to Bear On New Century Financial

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How “Activist Investors” David Einhorn and Dan Loeb Brought Their Special Talents to Bear On New Century Financial

Mark Mitchell

DeepCapture, 18 February 2010

You don’t hear much about it, but the March 2007 bankruptcy of a company called New Century Financial was arguably one of the most important events leading up to the financial crisis that nearly caused a second Great Depression.

It was the demise of New Century, then the nation’s second largest mortgage lender, that triggered the collapse of the market for collateralized debt obligations. And it was the collapse in the value of collateralized debt obligations (a majority of which contained New Century mortgages) that hobbled a number of big financial firms. Once hobbled, the likes of Bear Stearns and Lehman Brothers were ripe targets for unscrupulous hedge fund managers who amplified their problems by spreading exaggerated rumors while bombarding them with illegal naked short selling.

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Article: Shooting the Naked Messengers

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Shooting the Naked Messengers

Max Abelson

Observer, 13 January 2010

Last year, a 38-year-old named Judd Bagley found himself on Facebook, looking at the friend lists of reporters from The New York TimesThe Wall Street Journal, Bloomberg, Barron’s and Reuters, and of wildly important hedge fund managers like Dan Loeb and David Einhorn.

Eventually creating a fake account, one person led to another. These people were all friends, he saw, and their friends were friends, too. A new chapter of a crusade was born.

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