Walker to public pension fund manager: Can you spare $200 million?

[hue]

http://watchdog.org/68041/walker-to-public-pension-fund-manager-can-you-spare-200-million/

MADISON – Nearly two years after demanding public-sector unions pick up their share of taxpayer-funded pensions, Gov. Scott Walker is asking government workers to bet part of their retirements on a plan to subsidize new businesses in Wisconsin.

The venture capital plan calls for moving hundreds of millions of dollars into an embattled quasi-public economic development agency that lost track of a $56 million loan portfolio, among other mismanagement problems.

Documents obtained by Wisconsin Reporter show that Reed Hall, CEO of Walker’s Wisconsin Economic Development Corporation, recommended that the State of Wisconsin Investment Board loan $200 million to WEDC.

Walker serves as chairman of the WEDC board of directors.

Hall said WEDC would use SWIB’s cash to promote business growth through taxpayer-subsidized government investments in Wisconsin companies.
In a letter to SWIB, Hall explained that he was turning to the pension fund because his start-up program would likely find it harder to tap private investors “due to a lack of demonstrable track records.”

“Given that some of these funds may be managed by first-time fund managers, the issue arises of where to turn for the outside investment,” Hall wrote. “We recommend that SWIB consider an allocation … of $200M.”

[reteachinwi]

1. Ask WMC instead

or have WMC insure that SWIB gets paid back.

[madrchsod]

2. looks like walker wants to follow the illinois plan

appropriate money for the pension fund then use it for other purposes. he must have finally realized what a great job the democrats and republicans have done here in illinois all these years.
the difference between quin , madigan, and the chicago machine is walker is up front about what he does.

[Scuba]

3. NO! NO FUCKING WAY ...

Trusting Squat Wanker and his criminal gang with the State Pension Fund?

NO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[a kennedy]

4. CAN HE EVEN DO THIS???

WTH???

[ewagner]

5. $200M from the State Pension fund?!!?!?!?!?!?!

Giving it (or loaning it) to WEDC is high risk...only 20% or so of all venture capital funded new businesses survive...Reed Hall should know this....

they'd have better luck at the Ho Chunk Casino in Nekoosa, WI.

[dragonlady]

6. They'll use that $200 million to create the 250,000 jobs

and then pay the pension fund back, with interest, from the increased income tax collections. That's a brilliant idea. What could possibly go wrong?

(Do I really have to add ?)

[ewagner]

7. You're right Dragonlady...

...with Scott Walker in charge we JUST KNOW everything he touches works out PERFECTLY for the people of Wisconsin!


(just in case)

[Jackpine Radical]

8. Translation:

Holy cow, there's this whole big pot of money that theoretically belongs to the undeserving retired State parasites who wasted their entire lives sucking on the state government tit, and my business friends really need it, and by damn I'm gonna make sure they get it.

[yourout]

9. No, no, no, no,.........a thousand times a thousand no.

NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..NO..

[Sabriel]

10. Frightening but not unexpected

Everyone assumed it was only a matter of time.

Let the great retirement exodus commence! I know several folks who are keeping an eye in this very issue and will go immediately if there's a hint of tampering.

[lutefisk]

11. They will do whatever they want for the next two years

I don't think there is anything that can stop these fuckers, and they know it.

What will this state look like in two years? I can't even imagine.

(Waving goodbye to Wisconsin)

[Scuba]

12. Wrong. There's the courts, and a State Supreme Court Justice race going on now ....

We have a chance to tip the makeup of the State Supreme Court and we need to do that. That will give us legal recourse to stop/slow Walker/Koch/Fitzasshole Brothers and their criminal plans.

Wisconsin: Russ Feingold endorses Ed Fallone for State Supreme Court Justice

http://www.democraticunderground.com/10846434

[lutefisk]

13. Yes, the Supreme Court election is important

But even if we can loosen the Republicans' hold on the Supreme Court, there is a limit to what any of the courts can address. The courts move slowly and are guided by law. Walker and the Wisconsin Republicans move fast and are lawless.

Excuse my pessimism, but we're fucked.

Keep fighting Scuba... I'm pretty close to getting the hell out of here.

[Scuba]

14. Out? Never! I've scoured states as far as ...

... Colorado and Washington and couldn't even find lefse!

[midnight]

15. What is lefse? Thanks.

[Scuba]

16. A very thin potato flatbread, usually eaten with butter, sometimes salt and pepper.

Lutefisk, on the other hand, is fish that's been loaked in lye until it is a sickening gelatin. Lips that touch lutefisk will never touch mine.

[midnight]

20. Too funny... I thought it was a political reference.. thanks for clarifying...

[snacker]

17. Just say "no"

and, thankfully, they did:

http://lacrossetribune.com/news/state-and-regional/wi/wedc-head-asks-for-million-in-pension-funds/article_f41ef40a-47df-50f1-ba8f-89882f05757a.html?comment_form=true

"The board that oversees Wisconsin's pension program for public employees has rejected a request by the head of Gov. Scott Walker's semi-private economic development agency to tap $200 million from the fund to invest in risky startup businesses."

[a kennedy]

18. Received this information with my quarterly newsletter from SWIB

The Wisconsin Private Debt Program has been part of SWIB's investment strategy since the 1960s. Often times, smaller companies that can not get the attention of very large investors may find sources of senior and subordinated debt financing through SWIB’s Private Debt portfolio.

SWIB can also be a good partner with the company’s banks, providing the long-term loan that complements the bank’s short-term financing, but does not compete with the bank to provide other financial services.

The portfolio provides long-term, senior fixed-rate loans and subordinated loans to operating businesses that can demonstrate the ability to repay their debt. Wisconsin companies must pass the same credit tests that are used to evaluate companies outside the state. Wisconsin companies can qualify for senior loans as small as $5 million and subordinated loans as small as $3 million. Financing is primarily provided to businesses:

Headquartered in Wisconsin
Operating in Wisconsin
Intending to invest proceeds in Wisconsin
SWIB will consider some regional transactions as investments for its private debt portfolio.

http://www.swib.state.wi.us/privatedebt.aspx

[snacker]

19. Request denied

http://lacrossetribune.com/news/state-and-regional/wi/wedc-head-asks-for-million-in-pension-funds/article_f41ef40a-47df-50f1-ba8f-89882f05757a.html?comment_form=true

"The board that oversees Wisconsin's pension program for public employees has rejected a request by the head of Gov. Scott Walker's semi-private economic development agency to tap $200 million from the fund to invest in risky startup businesses."

I posted this earlier, but should have changed my "title"...

[hue]

21. Thanks for following up!!

[LiberalFighter]

22. Government workers need to stand up to this. Take it to court.

Remove the board members that vote to approve it.