Day By Day

Tuesday, June 19, 2012

Follow the money

More crony capitalism, this time from New York City.  From the New York Post:
Here’s an inconvenient truth: New York is greening the wallet of Al Gore.

Embattled city Comptroller John Liu has delivered a $16.56 million contract to the former vice president’s environmentally friendly investment firm, Generation Investment Management, to help manage hundreds of millions of dollars in city pension funds, The Post has learned.

The Comptroller’s Office had previously awarded Gore’s firm $12.8 million in pension-fund business under Liu’s predecessor, Bill Thompson.

Since 2009, state Comptroller Tom DiNapoli has approved $6 million in contracts to the firm, co-founded and chaired by Gore. Generation now manages nearly a half-billion dollars of state pension-fund investments, records show.

In total, that’s more than $35 million in greenbacks to Gore’s firm.

Liu’s office proposes investment-management contracts to the board of trustees of the city’s five major pension funds. Generation is an investment manager for two of them: the New York City Employees Retirement System (NYCERS) and the Police Pension Fund.

But the Gore connection has been a closely held secret.

One NYCERS trustee said he didn’t even know Gore’s firm was a city investment manager.
“That’s been way under the radar. I was unaware of it,” said NYCERS trustee Gregory Floyd, head of Teamsters Local 237.
So not only does Algore get the management fees from the contract, he also gets to use those pension fund assets to prop up "green investments".  Moving the money around can make it seem as though the companies have genuine market interest.  I'll even bet there may be some "rob Peter to pay Paul" going on in pumping up "values".

All that matters is that you have the right friends.

Hat tip to I Own the World pointing to Michelle Malkin.

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