Posted on 04/04/2009 6:17:57 AM PDT by TigerLikesRooster
FDIC seeks pension funds' interest in toxic-loan purchases
11:39 AM, April 3, 2009
Major pension funds today are getting pitched to participate in the Obama administration's plan to buy banks' toxic mortgage assets.
Federal Deposit Insurance Corp. Chairman Sheila Bair was scheduled to brief the funds, including the California Public Employees’ Retirement System, on the program. The California State Teachers Retirement System also was invited.
A CalPERS spokeswoman said one of the questions the fund had was whether it could buy loans directly from banks under the program, rather than using a money manager to handle and manage the purchases.
After suffering severe losses on so much of their stock market and private-equity assets over the last year, it’s not surprising that pension funds would be looking for opportunities elsewhere. The Obama administration’s loan-purchase program is aimed at enticing big investors by offering to have the Treasury and FDIC shoulder much of the risk.
(Excerpt) Read more at latimesblogs.latimes.com ...
Ping!
New Jersey's pension public employee pension system is talking about doing the same. Let me get this straight. We have a pension system that is awash in red ink which by any actuarial account can not meet future obligations. We have this same system buying “toxic assets” which for all any one knows may not be worth the paper they're written on. Reminds me of a gambler who is on a losing streak who thinks he's going to make it back with one more turn on the roulette wheel. This will end badly.
I tell you one thing:
lots of these folks will be in denial to the bitter end.
It makes no difference. Pension funds purchase worthless paper, the government bails out the pension fund with taxpayer dollars.
IT WILL NOT END UNTIL EVERY DOLLAR IS STOLEN!
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