Bad Investments and Bad Management
NOLA Firefighter Pension Fund on the Rocks
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  • Dustoff

    WOW, fire the dumb union. Ever think that type of investment would be risky.

  • Tom Servo

    I’ve been critical of Landrieu, but good on him for trying to run the fraudsters off the board.

    I will guarantee those board members got hefty kickbacks from every bad investment they made. They basically scammed the system, taking kickbacks, treating it like their own gambling parlor, and then counting on the city to pick up the tab when it all went bad.

  • freeinaz

    I have to agree with Tom Servo below. I would bet the board members were given some type of “kickbacks” for these risky investments all the time selling this to the union and city as great investments with high returns. I wouldn’t doubt for a moment that some of the former board members were related to someone from the hedge fund. All in all, there’s something extremely fishy here.

    • Andrew Allison

      All expenses paid trips to view the properties at a minimum. And ““I’m not saying it isn’t money, but when you estimate something to be worth something and it doesn’t end up being that, then it looks on paper like you lost money,” he said.” is would be laughable if the trustees hadn’t lost half the value of the fund in four years.

  • Boritz

    “The Mayor of New Orleans, Mitch Landrieu, has been ordered by a court to start paying into the fund to make up the difference with taxpayer money but has thus far balked, insisting that the structure of the board managing the pension be completely revamped.”

    Hey mayor, stake us to some more rolls of the dice so we can stay at the table and, uh, make up our losses. Funny.

    As far as the investments, they should have invested in the golf course/resort in Lajitas Texas. &nbspA developer built it in the middle of nowhere expecting it to be a total write-off loss. &nbspInstead Fortune 500 companies flocked there to hold team building exercises away from it all. &nbspTotally loused up the guy’s tax planning and the (taxable) property values of existing residents. &nbspLIfe’s a gamble.

  • Corlyss

    One wonders why the states missed th e boat in charging the federal government pension back up program for their shortfalls. Why were they not as imaginative as private industry?

    • Andrew Allison

      The Federal Pension Benefit Guaranty Corporation protects pension benefits in private-sector defined benefit plans. It is an insurance program funded by the the sponsors of such plans, and receives no general fund tax revenues. Public pension plans, on the other hand, are funded entirely by tax revenues. In their infinite wisdom [/sarcasm alert], public-sector unions decided that they didn’t need insurance for their plans because the taxpayer was on the hook for their benefits. This goes far to explain the utterly irresponsible investment decisions made by many of them. Much as I despise the Trial Bar, I look forward to the class-action lawsuits by pensioners against the Trustees who so grossly violated their fiduciary duty.

      • Corlyss

        Rather short-sighted of them, don’t you think, to have eschewed hitting the taxpayers from another direction?

      • William Ockham

        The Federal Pension Benefit Guaranty Corporation..”receives no general fund taxes.” Yet.

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