Thursday, December 17, 2009

Pension Fund Sues Goldman Sachs on Executive Bonuses

The TelegraphUK noted:

The Security Police and Fire Professionals of America Retirement Fund is a small investor in Goldman Sachs, and is claiming the bank’s directors and executive officers are breaching their fiduciary duties to shareholders by failing to administer the company’s compensation plan in the best interest of investors.

The aim of the lawsuit is to recover billions of dollars Goldman will pay out in compensation this year.
Goldman's response is below:

A Goldman spokesman dismissed the lawsuit, saying: “It is entirely without merit and we will vigorously contest it.”
Pension funds play pay back, even as most double down on risky private equity underwriters PEU's). When the big money boys battle each other with high priced lawyers, the little guy can only watch. Where's a Coliseum when you need it? Catharsis is needed.