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The smoking gun. In this video, the Civic Committee’s Ty Fahner admits he colluded with the bond rating agencies to destroy Illinois pensions.

August 1, 2013

Thanks to Tim Furman for providing this video segment.

There is nothing the fat cats in Illinois won’t do to destroy public employee pensions.

The Civic Committee’s Ty Fahner demonstrated this when he spoke to a gathering of the Chicago Union League Club last month.

Fahner openly admits that he colluded with the bond rating agencies, getting them to lower their rating of Illinois bonds for the purpose of creating political support for gutting public employee pensions.

By lowering bond ratings the state might have had a more difficult time borrowing money. And it costs the state and the taxpayers more.

Fahner doesn’t care. He is on a mission to destroy public employee pensions.

But, is Fahner admitting to illegal activity in this video?

He was engaging in illegal activity if he made money on transactions based on his conversations with the bond rating agencies. That’s called insider trading.

To find that out would require Attorney General Lisa Madigan to open an investigation.

Or our get-to-it-tomorrow press to do some real investigative journalism.

What are the odds either of those two things happening?

5 Comments leave one →
  1. Anonymous permalink
    August 2, 2013 6:28 am

    Maybe the BGA. Investigate Lisa madigan failure to investigate

  2. Al Moncrief permalink
    August 2, 2013 10:28 am

    KWAME RAOUL: FAILING TO PAY CONTRACTED COMPENSATION IS UNCONSTITUTIONAL. FYI KWAME, PUBLIC PENSION COLA BENEFITS ARE ALSO CONTRACTED (DEFERRED) COMPENSATION FOR WORK COMPLETED.

    Kwame Raoul is an engaging public figure, but he needs to get it right on public pension rights in Illinois. Illinois Pension Conference Committee Chair Kwame Raoul on contractual rights to earned compensation:

    “I think … there are just plain old labor law issues, employment law issues, because we’re employed, in essence, by contract. And it’s an assigned salary, so if you don’t pay somebody, you’re obviously in violation of the law, you know?”

    Kwame Raoul on Illinois public pension COLA benefits:

    “It’s identical in that aspect (the plan’s primary component is changing a 3 percent compounded cost-of-living increase to a percent equal to half of the inflation rate).”

    “One of the attractive aspects is the notion of inflation protection for the employees and retirees. And that’s attractive both from just a moral standpoint and from making an argument of constitutionality in terms of having something offered.”

    (My comment: Kwame, breaking a contractual public pension COLA obligation is not at all “attractive,” nor is it “constitutional.” Taking something from a person is not giving something to a person. Illinois pensions have “automatic,” contracted COLA benefits. Public pension COLA benefits are deferred compensation, presently earned.)

    http://www.chicagolawbulletin.com/Articles/2013/07/30/dispatch-7-30-2013.aspx

    Support contractual public pension rights in the USA. Contribute at saaveperacola.com. Friend Save Pera Cola on Facebook!

  3. wtf permalink
    August 5, 2013 11:43 am

    Whether or not Ty Fahner violated the criminal law, he may have violated the attorney disciplinary rules. His law firm Mayer, Brown has collected millions in attorney fees from the State of Illinois for representing the State as bond counsel. At the same time Ty directly advocated against the interest of a firm client by pressing for an unfavorable bond rating. Why is the State hiring Ty’s firm when it bites the hand which feeds it?

  4. Cheryl Dagon permalink
    October 22, 2013 5:57 am

    Congratutulations! You deserve the honor!

    Begin forwarded message:

    > From: Fred Klonsky > Subject: [New post] Congratulatory IRTA resolution to Glen Brown, me and other pension bloggers. > Date: October 22, 2013 4:43:22 AM CDT > To: reporter55@consolidated.net > Reply-To: “Fred Klonsky” > >

Trackbacks

  1. The smoking gun. In this video, the Civic Committee’s Ty Fahner admits he colluded with the bond rating agencies to destroy Illinois pensions. | Fred Klonsky ← NPE News Briefs

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