Posted on 04/26/2017 11:24:23 AM PDT by Oldeconomybuyer
Public pension funds in at least seven U.S. states have invested millions of dollars in an investment fund that owns a New York hotel and pays one of President Donald Trump's companies to run it, according to a Reuters review of public records. That arrangement could put Trump at risk of violating an obscure constitutional clause, some legal experts say.
The Trump SoHo Hotel and Condominium in Manhattan is an upscale 46-story property owned by a Los Angeles investment group, the CIM Group, through one of its real estate funds.
In return for marketing and managing the hotel-condo, CIM pays Trump International Hotels Management LLC 5.75 percent of the SoHo's operating revenues annually.
That payment chain merits closer scrutiny because it could put Trump at risk of falling foul of a little-known constitutional rule prohibiting the flow of money from states to the pockets of a sitting president, five ethics and constitutional law experts interviewed by Reuters said.
None of the 11 pension funds contacted by Reuters said they were prepared to divest from the CIM fund. For instance, the Teacher Retirement System of Texas, which has invested $225 million in the CIM fund, said it was “not our practice to comment on questions of this nature.”The possible problem for Trump lies in the fact that state- and city-run pension funds have invested in the CIM fund and pay it a few million dollars in quarterly fees to manage their investments in its portfolio, which includes the Trump SoHo, according to state investment records.
(Excerpt) Read more at reuters.com ...
Exlusive: Shit
there. fixed it.
Bigly. Guy has been an open book for 35+ years. I hope his company sues for libel/slander. Sue the fake journalist, sue al-Reuters, sue the primary distributors of the fake news.
Make them spend millions on lawyers.
The ignorance is strong in this one.
RoTo Reuters..
away goes credibility down the drain
Roto REUTERS!!
Well, I guess those that manage those Public Pensions should concentrate more on finding investments that LOSE Cash Money for their benefactors! Will that make them happier?
*Rolleyes* These people are insane!
Stories like this always reflect the liberals’ insane jealousy of successful people except those in the entertainment industry.
Wow! That’s really reaching to make up a “story”. Deserves an award.
Being an investment, the Trump property is borrowing from the states. I am not sure that counts here. Can someone elucidate the exact rule being cited?
What you said. That is EXACTLY right! They might have to go invest in some glo-bull warming crap or something, just to be politically correct with their liberal supporters.
One question is whether public pension funds are truly State funds from a constitutional understanding. Aren’t they like prepaid wages; money set aside by government employees but (mis)managed by the state?
Sure hope Trump can benefit from this — financially and politically — all with plausible deniability, all in a way where he can flick it off his shoulder like a gnat.
These press people are gnats.
You mean in comparison of how forced tax receipts and leaching off the taxpayers have enriched the Demoncraps?
The hidden gem is that Trump negotiated 5.75% of operating revenue for the property. That's the kind of guy I want in charge.
That’s a good point. It’s an investment on the behalf of the employees at the point the Trump properties see it.
Not that Democrats respect fine points unless they go their way.
Bwahahaha
Invest wisely
I’ve made some good money in The Vice Fund:
Gambling, Liquor and Smokes! Last things ANYONE gives up - even in Hard Times. ;)
At least trump is successful setup at something other then illegally sneaking into USA and freaking out on cocsine and selling us out to our moslem enemies
They don’t seem to understand “investment”. See, the pensions “invest in” things, and those things pay back the investors.
So really, the headline should be “public pension funds benefit from Trump businesses”.
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