Rattner & The Pension Funds

[Gerry Clinchy]

NY Times http://www.nytimes.com/2009/07/14/bu...html?th&emc=th

Carlyle, which is among the biggest and most politically connected private equity firms and paid a $20 million fine, has agreed to stop using intermediaries, known as placement agents, to win investment business from public pension funds. It also agreed to halt campaign contributions to public officials who oversee pension funds. Riverstone Holdings, another firm caught up in the case, paid a $30 million settlement last month.

I'm really curious where these settlement funds go. Here's $50 million "found money". Did it go into NYS coffers? Did it go into the pension funds? Where did it go? Every time we hear of a settlement like this, where does the money go?

[dnf777]

NY Times http://www.nytimes.com/2009/07/14/bu...html?th&emc=th



I'm really curious where these settlement funds go. Here's $50 million "found money". Did it go into NYS coffers? Did it go into the pension funds? Where did it go? Every time we hear of a settlement like this, where does the money go?

Good question. I'll bet UBS, RBS, and assorted other overseas accounts eventually. Its all a big circle, and every once in a while, there's big fines to make us think they're being kept honest. I wouldn't be surprised if it's back in Carlyle/Quad accounts by end of week. But we'd never know! Its all basically legalized money-laundering for lobbyists and the gov't.

[YardleyLabs]

NY Times http://www.nytimes.com/2009/07/14/bu...html?th&emc=th



I'm really curious where these settlement funds go. Here's $50 million "found money". Did it go into NYS coffers? Did it go into the pension funds? Where did it go? Every time we hear of a settlement like this, where does the money go?

I would assume the funds go to New York State since these are defined benefit plans which the state is solely responsible for funding. Thus, if the funds went to the pension plans, it would simply reduce the state;s funding obligations by an equal amount.

I would love to know who was being paid. Many years ago there was an individual who was the designated "advisor" for NYC's five public employee pension funds. He ran an actuarial consulting firm that received massive contracts from anyone wanting to do business with the funds or wanting a little extra political umpf in support of their business interests. He died several years ago (http://www.nytimes.com/2002/11/30/ny...ies-at-89.html), but his story provides interesting insight into New York politics over a period of many years, but particularly during the 1970's. He was a major factor in my personal decision to leave government.