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follow anonymous 2017 Mar 14, 4:29am
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CalPERSâ€™ general counsel Matt Jacobs is yet again giving the mushroom treatment to the board: keep them in the dark and feed them shit.
In this case, Jacobs has failed to brief the board on a serious potential conflict of interest of one of the two candidates for fiduciary counsel, the most important advisor to the board. The position that became vacant when the prior counsel, the tainted Robert Klausner, was pushed out for his many dubious practices.
As we will describe in greater detail below, the lawyer, Ashley Dunning of Nossaaman, LLP, is representing Marin County on what so far looks be a landmark case, in which a California appellate court has reversed over 60 years of precedent. This ruling threatens the pensions of all California public employees, including members of CalPERS and CalSTRS .The case is set to go to the Supreme Court and a number of groups have objected fiercely to the courtâ€™s legal reasoning. CalSTRSâ€™ general counsel Brian Bartow weighed in against the decision promptly after the ruling was issued, in October 2016.
At the end of this post, weâ€™ve attached two of many amicus curiae letters, including the one from CalSTRS, to show that informed parties see the decision as a threat to the benefits even of major California pension funds.
As one retired state attorney wrote:
Jacobs is trying to make monkeys out of the employee-elected members of the CalPERS Board. That is a level of disloyalty to the Board that would get him fired â€” if the Board were actually his client. He reveals himself to be working against their interests.
Moreover, after being hand-picked by Jacobs, Dunning is currently advising the board as interim fiduciary counsel. Jacobs has not only failed to tell the board of the conflict of interest but as a result has also failed to get the board to provide a written waiver. Nor is it clear whether Jacobs waived the conflict of interest on behalf of CalPERS.
Full Article: http://www.nakedcapitalism.com/2017/03/railroading-calpers-board-general-counsel-withholds-fiduciary-counsel-candidate-leading-case-undermines-calpers-calstrs.html
#CalPERS #CalSTRS #California #Pensions #Economics