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KRS Losing 100s Of Millions? Puppies & Rainbows

June 13th, 2012 · 9 Comments

After four weeks – upon being called out – the Herald-Leader decided to publish Chris Tobe’s letter to the editor comparing JPMorgan’s billions of dollars in losses to the $100+ million in losses by Record Currency at Kentucky Retirement Systems.

While the JPMorgan CEO and his board have yet to give back any of their sweet cash, the Record Currency board is taking a 10% pay cut.

Things must be pretty bad at the KRS’ currency manager?

Nearly every pension plan except the KRS plans on suing them over excessive currency losses.

But you’re hearing nothing about the losses and shenanigans in Kentucky.

Tags: Corruption

9 responses so far ↓

  • 1 whocares // Jun 13, 2012 at 2:25 pm

    Please stop saying JPmorgan lost money. In every measurable way JPmorgan MADE money in the same quarter in which they conducted the trade that lost 2 billion.

  • 2 jake // Jun 13, 2012 at 2:31 pm

    You just said it – “trade that lost 2 billion.”

  • 3 E // Jun 13, 2012 at 3:16 pm

    To say ‘in every measurable way JPM MADE money” isn’t exactly true. As noted, in some measures and activities JPM did in fact lose money, in other more prolific measures JPM and most other finance/investment companies only made money ‘on paper’ as the clods in DC have pretty much allowed them to assign whatever valuations they want, to otherwise questionable assets.
    Still, the core issue that Jake raises (that everyone else seems to be asleep at the wheel over) is KRS and the ever more apparent mismanagement and investment deals that reek of cronyism….all while being one of THE worst funded and managed public pension funds in the nation.
    This thing is going to hit our poor state like a frieght train…very soon. My money says most all the other news outlets in the state will act surprised and cover their asses claiming that no one could have seen it coming…that’s if they don’t do a complete whitewash of it.

  • 4 John Cheves // Jun 13, 2012 at 4:24 pm

    “E” said: “My money says most all the other news outlets in the state will act surprised and cover their asses claiming that no one could have seen it coming…that’s if they don’t do a complete whitewash of it.”

    What on Earth are you talking about?

    The state’s news outlets — I write for one of them — have warned for years about massive under-funding of the Kentucky Retirement Systems. We’ve printed detailed charts. We’ve warned that it’s getting much worse and investments now must be sold just to cover outgoing checks. We wrote about questionable real estate deals at KRS and the previously undisclosed use of placement agents and political lobbyists and their ties to Frankfort’s players. We reported on the many outside groups that get to squeeze into KRS, worsening the problem. We wrote about the sweeter pension deals for the lawmakers who under-funded KRS. We broke the news about the Securities and Exchange Commission’s ongoing investigation into KRS.

    And most of these stories, if not all of them, were on the front page.

    If any of this is news to you, then you’re not paying attention. That’s on you.

    Complain about the status quo all you like. But don’t pretend there’s a secret conspiracy to keep things hidden.

    If you’re aware of more news that needs to be printed now, tell us what it is.

  • 5 jake // Jun 13, 2012 at 4:43 pm

    Actually, Cheves, I believe your outlet is the only one to seriously cover the KRS issues.

    In fact, you’re the only person in the mainstream currently covering these issues.

  • 6 Jimfkft // Jun 13, 2012 at 5:06 pm

    John Cheves has done a good job of covering the major issues relating to KRS. It’s unfortunate that no media outlet considers KRS board meetings part of its regular beat, because there are significant developments that go unreported. Worse still, that is exactly the way KRS wants it. Otherwise, why would they meet in a conference room that can accommodate maybe six members of the public?

  • 7 Jimfkft // Jun 13, 2012 at 5:14 pm

    John — In answer to your question about potential news, have you examined the circumstances behind the resignation of Bob Wilcher? It may have been completely unrelated to any problems at KRS, or….

  • 8 whocares // Jun 13, 2012 at 5:22 pm

    JPmorgan Chase took in more money than they spent in the quarter that this trade took place in. That’s “making money”. Every business has transactions that loses money. That’s why you don’t break it down by transaction, you actually add it up at the end of a quarter or year.

  • 9 Jocko Flocko // Jun 14, 2012 at 10:32 am

    Expecting legislative “leaders” like Greg Stumbo or David Williams to fix KRS is like expecting bank robbers to lock up after they leave. Mr. Cheves….Keep an eye on all the legislators who move into cushy state jobs and then get a high three retirement. People talk about double dipping…Hell, in Frankfort triple dippers are common. Watch out, Mr. Comer, people are watching. Let’s hope beekeepers were not just the start.