Joanne asks, who are pension funds responsible to -- by law, they are responsible to the pensioners and potential pensioners; likewise, at least arguable, mutual fund managers dealing with unsophisticated or (as with 401(k) or 403(b) plans) involuntary investors. Practically speaking, are there conflicts of interest, self-dealing, breaches of fiduciary duty? You bet. That's what keeps the plaintiff's securities bar in business, that's what the SEC is for, and why sometimes the US attorney is called in.
--- joanna <123hop at comcast.net> wrote:
>
>
> andie nachgeborenen wrote:
>
> >Of course there is a real strong incentive for
> >corporations not to take advantage of this doubtful
> >benefit. Who's going to invest in some firm that
> isn't
> >at least as transparent as a 10-K or a 10-Q can
> make
> >it? Not me, that's for damn sure.
> >
> Yup.
>
> > How are the ratings
> >folks like S&P going to evaluate a firm or
> recommend m
> >that doesn't disclose its finances? What
> responsible
> >pension fund or mutual fund is going to buy X Co.
> >stocks on no basis at all?
> >
> Responsible pension fund? Well -- responsible to
> whom?
>
> >It's especially ironic that Bernake does this the
> day
> >that Lay & Skilling go down for cooking the books.
> >
> Yup.
>
> Joanna
>
>
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