Cities And States Paying Massive Secret Fees To Wall Street: Report

By David Sirota, Matthew Cunningham-Cook

California’s report said $440 million. New Jersey’s said $600 million. In Pennsylvania, the tally is $700 million. Those figures are public worker pension fees being paid annually by taxpayers to Wall Street firms, and they have kicked off an intensifying debate over whether such expenses are necessary. Now, a report from an industry-friendly source says those huge levies represent only a fraction of the true amounts being raked in by Wall Street firms from state and local governments.

In all, CEM Benchmarking concludes that America’s public pension funds are paying billions of dollars in undisclosed fees to private equity firms.