16 June 2015

Nope, No Corruption Here………

It is not surprising that Obama wants to move a portion of military pension to defined contribution (401(k) type) plan, because, after all, Obama has been all about allowing Wall Street to loot, but it is a bit unseemly for the White House to direct most of the business a longtime political supporter, Blackrock:
American service members are confronting a potential haircut. Under a proposal the Pentagon outlined last week, new members of the armed forces would see their guaranteed retirement benefits cut by one-fifth if Congress approves the plan.

But if future veterans are being asked to make do with less, one key constituency stands to capture more: Wall Street.

Under the details of the Pentagon plan, the federal government would divert 3 percent of service members’ pay into a 401(k)-style plan that would be managed largely by BlackRock, a financial firm whose executives helped bankroll President Barack Obama’s election campaigns.

The change could wind up transferring as much as $50 billion from military paychecks to BlackRock, generating tens of millions of dollars in fees for the Wall Street giant. BlackRock employees have donated over $90,000 to Obama’s campaigns directly, and nearly $75,000 to the Democratic National Committee during the course of Obama’s two presidential campaigns, according to data compiled by the Center for Responsive Politics. BlackRock Chairman and CEO Larry Fink was also a prominent supporter of Obama’s election campaigns, and the company in 2013 named Hillary Clinton's former State Department chief of staff to its board of directors.
Gee, what a surprise.

Well, I guess that funding for the Barack Obama Presidential library, and 6-7 figure speaker fees don't generate themselves.


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