Capitol Fax.com - Your Illinois News Radar » Frerichs hit for letter to money managers
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Frerichs hit for letter to money managers

Tuesday, Mar 16, 2021 - Posted by Rich Miller

* SEIU Majority Action last month

​More than 25 state treasurers and elected fiduciaries and trustees of funds with assets under management of over $1 trillion are calling on five top asset managers––Vanguard, State Street, Fidelity, JPMorgan Asset Management, and BNY Mellon––to answer for their political contributions and ​track records of blocking of shareholder accountability efforts on lobbying and political disclosure​ in the aftermath of the Capitol Insurrection. The calls build on last month’s ​letter​ to BlackRock sent by a number of state treasurers, elected fiduciaries and trustees expressing similar concerns about its corporate political spending and lobbying transparency and practices. ​Recent analysis​ by ​Majority Action​, a nonprofit shareholder advocacy organization, found that the six top asset managers who received the letters contributed more than $1 million to members of Congress who opposed the election results after the Capitol insurrection through their political action committees (PACs) during the 2016-2020 election cycles.

* Greg Bishop at the Center Square

Illinois’ treasurer is asking the nation’s top money managers not to donate to Republicans who objected to the certification of the 2020 election results, a move one critic said was a taxpayer-funded political bludgeon.

Treasurer Michael Frerichs defended signing a letter last month with other fiduciaries asking the nation’s top money managers to refrain from donating to 147 members of Congress who objected to certifying the 2020 election results on Jan. 6.

“There are a variety of people pushing lies about government, lies about our elections, destroying trust in our government, destroying trust in that process, which is destabilizing to our country,” Frerichs said Monday.

Last month’s letter – spearheaded by the nonprofit Majority Action and health care union SEIU – went to Vanguard, State Street, Fidelity, JPMorgan Asset Management and BNY Mellon last month. The funds donated $1 million to members of Congress who objected to the election results. Frerichs signed letters only to Vanguard, Fidelity and State Street.

“Will State Street forswear corporate political spending (direct or indirect) to the 147 members of Congress who voted to overturn the results of a free and fair democratic election on January 6th, 2021?” the letter to State Street said.

Members of Congress, by law, can raise objections to election certification, as was done Jan. 6, 2020. The objections found support in the U.S. Senate, but were not sustained. Certification of the electoral college was temporarily delayed because of the riots at the Capitol Building.

Asked if he’d urge the money managers not to support Democratic members of Congress who objected to the certification of President Donald Trump’s election win in 2017, Frerichs said he wouldn’t.

“In 2017, there were peaceful protests, there were not riots, there were not attacks on our … nation’s capital,” Frerichs said.

Combined, the signatories of the letters to the investment firms manage around $1 trillion of public funds.

Wirepoints founder Mark Glennon said there was violence across the country over the past four years and Democratic officials fueled skepticism of the 2016 outcome for years. He said Frerichs’ letter was a veiled political threat that used taxpayer resources.

“We all know that there’s too much money in politics, but this is an attempt by partisans to control that money and force it only into their coffers,” Glennon said.

Glennon said the letter seems designed to leverage taxpayer resources to chill political speech supporting Republicans.

“It’s nakedly partisan and it’s an attempt to force corporations to not make political contributions to [Republican], and to [Republicans] alone,” Glennon said.

Glennon is always supremely angry about something.

* Meanwhile

Illinois Treasurer Michael Frerichs has been in office since 2015. During that time as the head finance expert in the state he has earned more than $1 billion for state investments.

To put it in visual terms, Frerichs said $1 billion is the equivalent of funding 330 miles of new highways in the state. Frerichs is the first treasurer for the State of Illinois to reach the $1 billion threshold since Judy Baar Topinka in 1999.

Frerichs attributed his success to state lawmakers taking a bipartisan approach to investing and adopting more modern methods of earning money for the state. Frerichs gave the example that “lawmakers regulate what investments are possible and which are prohibited. For example, purchasing individual stocks in the state portfolio is not allowed.”

Changes in legislature have allowed Frerichs to invest the state’s funds into public sector bonds and highly rated corporate bonds. Some of these bonds come from well-known companies like Caterpillar, Deere & Co, and Pfizer.

The main reason he hit that same milestone as Topinka did 22 years ago is Frerichs was reelected, just like Topinka was in 1998. No treasurer since then has been reelected. Also, a billion dollars in 1999 is equivalent to $1.6 billion today.

       

31 Comments
  1. - TheInvisibleMan - Tuesday, Mar 16, 21 @ 11:39 am:

    “Glennon is always supremely angry about something.”

    Because PointyWires is basically just Infowars, but with numbers.


  2. - yeah... - Tuesday, Mar 16, 21 @ 11:42 am:

    Genius investor, that Frerichs. Parking state money in government and AAA corporate bonds. Who could have come up with such an insightful strategy?


  3. - Excitable Boy - Tuesday, Mar 16, 21 @ 11:43 am:

    - Republican], and to [Republicans] alone -

    It’s not TMF’s fault that it was only Republicans that voted to overturn a legitimate election.


  4. - Friendly Bob Adams - Tuesday, Mar 16, 21 @ 11:43 am:

    The Republicans in Congress that push the Big Lie that the presidential election was stolen need to be called out and shunned. They are openly on record against democracy.

    Frerichs and officials from other states are correct to point out the status of the members of the Big Lie team. However, it is extremely unlikely that their efforts will have much of an impact on political donations.


  5. - JB13 - Tuesday, Mar 16, 21 @ 11:45 am:

    It is, in fact, nakedly partisan and an abuse of his office for political purposes.

    Now this is where you all eminently smart folks jump in to rationalize why it’s OK when the “good guys” do it.


  6. - SpiDem - Tuesday, Mar 16, 21 @ 11:48 am:

    Not only is it a fair point, but I believe it would be both legal and morally correct for the State Treasurer to withhold state investment into any body shown to have supported anyone who voted to block certification of a fair and free election, or were found to have provided any support to the Jan6 Stop the Steal rally that led to the sacking of the US Capitol in an attempt to block the legal certification of the Presidential election.


  7. - Arsenal - Tuesday, Mar 16, 21 @ 11:53 am:

    ==It is, in fact, nakedly partisan and an abuse of his office for political purposes.

    Now this is where you all eminently smart folks jump in to rationalize why it’s OK when the “good guys” do it. ==

    Nothing says “a good faith objection to excessive partisanship” like pre-emptively mocking anyone who disagrees with you.


  8. - walker - Tuesday, Mar 16, 21 @ 11:56 am:

    “”The Republicans in Congress that push the Big Lie that the presidential election was stolen need to be called out and shunned. They are openly on record against democracy.”"

    That’s all true. But this is not an appropriate message from a State Treasurer.


  9. - Arsenal - Tuesday, Mar 16, 21 @ 11:56 am:

    There is no comparison to the Dems’ impotent whining in 2016 and the Trumpists’ barrage of lawsuits and violence in 2020. I agree that people shouldn’t donate money to the folks who supported the latter. And hey, if you want to go back to 2004 and say don’t donate to Barbara Boxer, either, fine.


  10. - Thomas Paine - Tuesday, Mar 16, 21 @ 11:57 am:

    === It is, in fact, nakedly partisan ===

    “Don’t assault the Capitol and try to overthrow our Democracy” is not a partisan issue.

    Only a minority of Republicans think that violence is okay when you don’t get your way.

    “If you’ve got a Blacklist, I wanna be on it.” - Billy Bragg, to Mark Glennon maybe.


  11. - Norseman - Tuesday, Mar 16, 21 @ 11:57 am:

    I’m shocked, shocked that a politician is playing politics. I’m further shocked that a partisan of one party is upset at a politician of the opposition party for doing what his own party has been doing.

    Cry me a river. The crops need watering.


  12. - Arsenal - Tuesday, Mar 16, 21 @ 11:58 am:

    ==“Don’t assault the Capitol and try to overthrow our Democracy” is not a partisan issue.==

    Apparently it is, now.

    I’ll gladly stand with the “Don’t do it” side.


  13. - Oswego Willy - Tuesday, Mar 16, 21 @ 12:00 pm:

    First,

    Glennon is so inherently angry.

    If Glennon wasn’t so busy grifting off that website, which first solicits monies before opening, his anger would define such a small man looking around every corner to be “the angry guy about… “… whatever

    Glennon is a sad soul. I feel sorry for how he sees everything.

    To the post,

    This might be Frerichs trying to shore up some bona fides as Frerichs’ vulnerability to a primary is predicated on Frerichs pondering the Frerichs Tax, taxing retirement income.

    Make a lil move like this, maybe it keeps some Dems at bay.

    Standing tall to tax retirement income makes one worry about… everyone waiting to take you down.


  14. - Annonin' - Tuesday, Mar 16, 21 @ 12:03 pm:

    who in the right minds sends a thug like Glennon to oppose critics of a Wall Street shake down? Rauner? Giffin? Uline? really not very smart.


  15. - RNUG - Tuesday, Mar 16, 21 @ 12:05 pm:

    The letter is another unforced error by Frerichs. Should not be blatantly using the office for politics. Just like talking about taxing retirement income was an unforced error.

    At this rate, he could be vulnerable in 2022 … and if he loses, he will have only himself to blame for supplying ammo to the other side.


  16. - Lucky Pierre - Tuesday, Mar 16, 21 @ 12:07 pm:

    House Democrats have been voting for the past few decades to overturn every election for President won by a Republican,

    In supreme irony they included House Impeachment manger Jamie Raskin who cast his first vote as a Congressman to overturn an election.

    “Even though Republicans were able to get two objections formally considered in 2021, they objected to votes from only six states. It should be noted, however, that the Capitol riot earlier in the day kept the number of objections lower than expected.

    In 2017, House Democrats objected to votes from Alabama, Florida, Georgia, North Carolina, South Carolina and Wisconsin. Objections also were made after the announcement of votes from Mississippi, Michigan and Wyoming, adding up to nine states. None of the nine objections was considered because they lacked the signature of a senator.”

    https://www.newsweek.com/fact-check-did-democrats-object-more-states-2016-republicans-2020-1561407


  17. - Back to the Future - Tuesday, Mar 16, 21 @ 12:09 pm:

    Agree with - Yeah -
    The overall returns Frerichs is bragging about, considering the hundreds of billions of dollars that went through state accounts over the last 6 years, is pathetic.
    Agree with JB13.
    His letter is a just a very political abuse of power. He is crossing a line that he should have more respect for.
    As to his overall performance, look at the low level of funding on the State Funds he sits on as a Trustee and Fiduciary.
    Not to be forgotten is his “clarification” on the idea of taxing retirement income during the campaign for a progressive tax.
    I do get the fact that he is tall like President Lincoln. I like Lincoln so that’s a plus. Other giving him high marks on being “tall” just not sure his record is very good on anything.


  18. - City Zen - Tuesday, Mar 16, 21 @ 12:12 pm:

    SEIU branding doesn’t make the argument more compelling.


  19. - Ferris Wheeler - Tuesday, Mar 16, 21 @ 12:20 pm:

    === The main reason he hit that same milestone ===

    Longevity helps. But also, Topinka was investing the state’s money when we were relatively flush with cash during the 90’s and interest rates were high.

    Frerichs managed to return $1 billion when the state had no budget and cash flow was so bad we could not pay bills.

    An apples-to-apples comparison is hard, but Frerich’s squeezed blood from a stone when we had serious cash flow problems and historically low interest rates.

    In between, Alexi lost tens of millions in College savings and Rutherford had a press conference, and that’s all those two will ever be remembered for during their tenure.


  20. - EssentialStateEmployeeFromChatham - Tuesday, Mar 16, 21 @ 12:25 pm:

    =To put it in visual terms, Frerichs said $1 billion is the equivalent of funding 330 miles of new highways in the state.=

    Using those figures maybe about $3.33 million of that total could be used to finish the remaining mile left in the MacArthur Extension from I-72 to Woodside Road and Iron Bridge Road. Which would give Chatham another direct access point from Springfield and makes sense on the map.


  21. - Mr. Green Genes - Tuesday, Mar 16, 21 @ 12:29 pm:

    “ Wirepoints founder Mark Glennon said there was violence across the country over the past four years”
    Related to the election? When?
    “and Democratic officials fueled skepticism of the 2016 outcome for years.”
    Who? Even Clinton went to Trump’s inauguration.
    “He said Frerichs’ letter was a veiled political threat that used taxpayer resources.”
    What was Frerichs threatening to do?


  22. - Lucky Pierre - Tuesday, Mar 16, 21 @ 12:36 pm:

    Historically low interest rates for sure but hardly bold from a stone

    The historically low interest rates have contributed significantly to a rise in the S & P 500 in April of 2016 from 2,065 to today at 3,969


  23. - Lucky Pierre - Tuesday, Mar 16, 21 @ 12:40 pm:

    Calculated partisan move by Frerichs to atone for his Kinsey gaffe on fair tax and retirement income.


  24. - Manchester - Tuesday, Mar 16, 21 @ 1:02 pm:

    I personally agree with the letter he sent. Messages need to be sent that supporting those who sought to obstruct the peaceful transfer of power has negative consequences. Agree that Frerichs made a major blunder with his view of taxing retirement income and his performance has been mediocre.


  25. - Mark Glennon - Tuesday, Mar 16, 21 @ 2:31 pm:

    For those interested in details on the Frerichs letter, our article on it is here. There, you can comment as you like on it or anything else about Wirepoints, and we respond to any criticisms of substance. https://wirepoints.org/illinois-treasurer-frerichs-latest-use-of-taxpayer-money-as-political-club-wirepoints/


  26. - Oswego Willy - Tuesday, Mar 16, 21 @ 2:42 pm:

    “Lucky Pierre; Pro-Insurrection”

    “If they can do it, we can do it”

    ‘Cept, the secret service didn’t have to usher out the Speaker of the House, the current and newly elected and waiting Vice Presidents in 2017.

    I knew you were a Trumpkin, - Lucky Pierre -, but attempting to justify insurrection is… welp… wow.

    To the post,

    Is the letter seemingly a political posturing tool? Yes

    A year from now, will it be enough to make an ad or make hay? Doubtful.

    Being a person who wants to discuss taxing retirement income is good for a sitting Treasurer? We’ll see come primary and general election time


  27. - JS Mill - Tuesday, Mar 16, 21 @ 3:03 pm:

    I am with Walker and RNUG, not something he should have signed off on as Treasurer. I agree with the sentiment, but doing as an official act just continues to lower the bar.

    That the GQP/trumpkin faithful are criticizing his actions is just another act of hypocrisy on their part. The lowering of the integrity bar by trump and his cult is the low point for the last century. they are not believers in the USA, the worship a single strongman wanna be. But, LP aside, that should not be the bar for the rest of us.


  28. - The Old Man - Tuesday, Mar 16, 21 @ 3:32 pm:

    The treasurer is just another DEM with his head in the sand.


  29. - don the legend - Tuesday, Mar 16, 21 @ 3:57 pm:

    ==Using those figures maybe about $3.33 million of that total could be used to finish the remaining mile left in the MacArthur Extension from I-72 to Woodside Road and Iron Bridge Road. ==

    ==or help make your water treatment facility work.


  30. - Suburban Democrat - Tuesday, Mar 16, 21 @ 4:15 pm:

    “Frerichs is worried about the primary” so he convinced 24 other Treasurers to sign a popular, progressive letter is certainly one explanation.

    “Frerichs is a Democrat” is another explanation.

    Democrats and Republicans doing Democratic or Republican things doesn’t really require some magical explanation, particularly when it is in keeping with their own political ideology and history.

    The Eastern Bloc is gonna Eastern Bloc, and Progressive Democrats are gonna Progressive Democrat.


  31. - Yellow Dog Democrat - Tuesday, Mar 16, 21 @ 5:51 pm:

    It’s not a “Democrat v Republican” issue, it is a “Democracy v Dictatorship” issue.

    3 of 5 Illinois Republicans voted to certify the Electoral College results.

    Only Mary “Praise Hitler” Miller and Mike “Overturn Papers” Bost voted to overturn the election.

    Here is what staunch Trump Supporter Darrin LaHood said:

    “Congress does not have, nor should we, the authority to take the power of electing a president away from the people. Overturning the results of the Electoral College would far exceed the power given to us in the Constitution, establish poor precedents, and usurp the will of the people.”

    Show me the lie.


Sorry, comments for this post are now closed.


* Isabel’s afternoon roundup
* Save the date!
* Energy Storage Can Minimize Major Price Spikes
* Trial gives glimpse into how Madigan managed his members
* Pritzker announces $72 million in medical debt relief for nearly 53K Illinois residents
* AG Raoul warns Mayor Johnson to reverse police reform budget cuts or risk sanctions
* Madigan trial roundup: Defense attacks credibility of ex-ComEd executive
* Senate President puts hold on bill to protect key aquifers from carbon sequestration
* Showcasing The Retailers Who Make Illinois Work
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Trump border czar pick has message for Pritzker: 'Game on'
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller