Gretchen Morgenson

Pensions and Private Equity – A Letter to the New York Times Editor

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Screen Shot 2014-10-26 at 5.23.56 PMThe ongoing racket between private equity firms and public pension funds in which they work together to earn billions of dollars in excessive fees at the expense of retirees across the country has been a key theme at Liberty Blitzkrieg this year. My most recent piece on the topic was published last week and titled, Another Pension Scandal – The Crony Love Affair Between North Carolina, Credit Suisse and Erskine Bowles.

Here’s an excerpt:

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Quote of the Day from K.K.R. – Wall Street Officially Becomes a Parody of Itself

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Screen Shot 2014-10-20 at 2.18.48 PMLongtime readers of Liberty Blitzkrieg will know that I think the greatest parody of Wall Street ever created is courtesy of SNL about a made-up firm called Global Century Investments. Before I provide a link to the video, I want to highlight a stunning quote from Gretchen Morgenson’s excellent New York Times article detailing the extraordinarily shady relationships between private equity firms and public pension funds. The quote comes in at the end of the article:

Kristi Huller, a spokeswoman for K.K.R., initially denied that it could reduce or eliminate its fiduciary duties. But after being presented with an excerpt from the agreement, she acknowledged that its language allowed “a modification of our fiduciary duties.”

What K.R.R. spokeswoman Kristi Huller does is straight up lie about the firm’s fiduciary duties, only to backtrack once she realizes she has been caught.

That is exactly what happens at the end of the SNL spoof. Yes it’s official, Wall Street has become a literal parody of itself.

Watch the video here and compare it to the quote above. Remarkable.

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