Former pension chief faulted for Wall Street contacts
By Michael Kranish, Globe Staff
WASHINGTON -- The former head of the nation’s pension insurance agency, who last year pushed through a high-risk strategy that shifted the insurance fund heavily into stocks just before the market crash, committed a "‘clear violation"’ of agency rules by contacting Wall Street firms who were bidding to oversee the new policy, while also seeking the help of one firm in gaining employment, according to a government report released today.
And the name of that one firm is.....wait for it.......Goldman! ding-ding-ding
Charles E. F. Millard, the former Lehman Brothers managing director who was the Bush administration’s director of the Pension Benefit Guaranty Corp. from May 2007 until President Obama took office on Jan. 20, dramatically changed how the agency invested its $64 billion insurance fund, shifting from a reliance mostly on conservative bonds to a strategy that put 55 percent of its portfolio in speculative investments such as stocks in emerging foreign countries, equity funds and real estate.
Like they say in that Guiness commercial Brilliant! Let's gamble with the insurance fund that backs the pensions of 44 million Americans.
Shortly after the new investment strategy was adopted in February 2008, Millard began a series of contacts with Wall Street firms that hoped to implement the new policy — even though he was warned by officials that such conversations were not allowed under federal bidding rules, according to a draft report by the agency’s inspector general made public today.
EVEN THOUGH HE WAS WARNED. Silly taxpayer- the laws only apply to people like you.
After the agency last fall hired the investment-banking firm Goldman Sachs to oversee a $700 million portion of the fund, Millard e-mailed with a Goldman executive about a Wall Street job, according to the report. The Goldman Sachs official responded that he had talked with a person at another firm ‘‘who really likes you and if times were better he would have hired you already.’’ The inspector general reported finding 29 emails documenting the effort of a Goldman Sachs official to help Millard ‘‘in his search for employment.’’
(((Attention Justice Department, time for you to actually do your job.)))
Investigate - Litigate - Incarcerate.
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