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Frerichs hit for letter to money managers

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Illinois

* 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.

posted by Rich Miller
Tuesday, Mar 16, 21 @ 11:35 am

Comments

“Glennon is always supremely angry about something.”

Because PointyWires is basically just Infowars, but with numbers.

Comment by TheInvisibleMan Tuesday, Mar 16, 21 @ 11:39 am
Genius investor, that Frerichs. Parking state money in government and AAA corporate bonds. Who could have come up with such an insightful strategy?

Comment by yeah... Tuesday, Mar 16, 21 @ 11:42 am
- Republican], and to [Republicans] alone -

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

Comment by Excitable Boy 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.

Comment by Friendly Bob Adams Tuesday, Mar 16, 21 @ 11:43 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.

Comment by JB13 Tuesday, Mar 16, 21 @ 11:45 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.

Comment by SpiDem Tuesday, Mar 16, 21 @ 11:48 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.

Comment by Arsenal Tuesday, Mar 16, 21 @ 11:53 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.

Comment by walker 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.

Comment by Arsenal Tuesday, Mar 16, 21 @ 11:56 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.

Comment by Thomas Paine 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.

Comment by Norseman Tuesday, Mar 16, 21 @ 11:57 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.

Comment by Arsenal Tuesday, Mar 16, 21 @ 11:58 am
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.

Comment by Oswego Willy Tuesday, Mar 16, 21 @ 12:00 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.

Comment by Annonin' Tuesday, Mar 16, 21 @ 12:03 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.

Comment by RNUG Tuesday, Mar 16, 21 @ 12:05 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

Comment by Lucky Pierre Tuesday, Mar 16, 21 @ 12:07 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.

Comment by Back to the Future Tuesday, Mar 16, 21 @ 12:09 pm
SEIU branding doesn’t make the argument more compelling.

Comment by City Zen Tuesday, Mar 16, 21 @ 12:12 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.

Comment by Ferris Wheeler Tuesday, Mar 16, 21 @ 12:20 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.

Comment by EssentialStateEmployeeFromChatham Tuesday, Mar 16, 21 @ 12:25 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?

Comment by Mr. Green Genes Tuesday, Mar 16, 21 @ 12:29 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

Comment by Lucky Pierre Tuesday, Mar 16, 21 @ 12:36 pm
Calculated partisan move by Frerichs to atone for his Kinsey gaffe on fair tax and retirement income.

Comment by Lucky Pierre Tuesday, Mar 16, 21 @ 12:40 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.

Comment by Manchester Tuesday, Mar 16, 21 @ 1:02 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/

Comment by Mark Glennon Tuesday, Mar 16, 21 @ 2:31 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

Comment by Oswego Willy Tuesday, Mar 16, 21 @ 2:42 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.

Comment by JS Mill Tuesday, Mar 16, 21 @ 3:03 pm
The treasurer is just another DEM with his head in the sand.

Comment by The Old Man Tuesday, Mar 16, 21 @ 3:32 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.

Comment by don the legend Tuesday, Mar 16, 21 @ 3:57 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.

Comment by Suburban Democrat Tuesday, Mar 16, 21 @ 4:15 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.

Comment by Yellow Dog Democrat Tuesday, Mar 16, 21 @ 5:51 pm