Reading a story in the Chicago Sun-Times by staff reporter Dan Mihalopoulos about some sleazy connections between Martin Cabrera and alderman Fast Eddy Burke, Valor Realty and some other old Blagojevich pals, I came across this sentence:
Between 2003 and 2012, the Teachers’ Retirement System of Illinois, the pension fund for suburban and downstate teachers, paid Cabrera’s firm nearly $2 million in broker commissions.
I blog about many things. But since TRS includes my own retirement money I pay attention when those initials come up in a story in the news.
How does a guy like Martin Cabrera get to make $2 million in commissions from TRS I wondered?
Cabrera was the guy who was brought in to run UNO. That was after Rahm’s pal and campaign chairman Juan Rangel was forced to step down. It was discovered that Rangel’s friends and family were making out like bandits from the $95 million in tax money, greased through the legislature by Mike Madigan and Squeezy.
Cabrera stepped down from UNO the other day.
I emailed Dave Urbanek, who is the Communications Director for TRS and asked my question: How does a guy like Martin Cabrera get to make $2 million in commissions from TRS?
Mr. Klonsky:
Teachers’ Retirement System has not contracted with Cabrera Capital Markets to act as a broker in the transaction of securities.
Pursuant to the TRS investment policy, 100 percent of the System’s assets are managed by independent, external investment managers. Broker selection for all trades is a fiduciary responsibility of these managers and defined within each firm’s investment management agreement. Neither the TRS Board of Trustees nor TRS staff are involved in the evaluation and/or selection of brokerage firms such as Cabrera.
Sincerely,
Dave Urbanek
Director of Communications
Teachers’ Retirement System
Hmm. That didn’t answer my question. So I called Dave.
“Can I follow up on your email?” I asked.
Dave was hostile and unpleasant. He called me the worst of all names: “A blogger.”
In an accusing tone he asked, “Where are you going with this?”
I told him I wan’t going anywhere. I hadn’t done anything. It was my retirement money. I tend to watch it.
Urbanek was irritated. He said the information was available on the TRS web site, that the board didn’t hire the brokers, but worked through managers, all of whom were listed on the TRS site.
The only requirement, it seems, is that they meet some minority and gender goals.
A phone call to Sun-Times reporter Dan Mihalopoulos resulted in nothing more than what was in his story.
In asking around I have been given different answers by people high and low in TRS.
I still have my question: Who do you have to know and what do you have to do to earn $2 million in commissions as a broker with TRS?
And why do people get pissed off when a TRS member asks that question?
Fred Klonsky 
This is one area that needs transparency, any and all fees, commissions, consulting contracts, money management contracts etc. re: the pensions plan. There is way to much $ involved. for it to fly under the radar.
Re: Transparency
Why sign in as Anonymous?
“Neither the TRS Board of Trustees nor TRS staff are involved in the evaluation and/or selection of brokerage firms such as Cabrera.” Obviously,this is a poor policy that needs to change.
Here is the note I sent today regarding the TRS phone call.
“I am curious why the hostile attitude was shown by your department regarding an inquiry regarding commissions paid to a reputed political hack for handling our investments. TRS exists for retired teachers. Investment managers are hired to protect the interests of retired teachers. A retired teacher should be able to call and ask a question without being treated like they are doing something wrong. We are all supposed to be working together here. Thanks for your time.”
John Kingsmill Elmwood Park High School Physical Education and Social Studies Cross Country and Track Coach Varsity Club sponsor
“The most important things in life are not things” ________________________________
Way back when the TV comedy “Hogan’s Heroes” was popular, the fat joke Nazi sergeant would sputter, “I know nothing.” As the canned laugh track roared its canned laugh, I knew there was nothing to laugh about. An “I know nothing” Nazi responding to anything in a Nazi camp is inherently not funny.
The TRS “I know nothing” response is neither funny nor acceptable. The rip-off of retirement fund money is neither funny nor acceptable. The corruption-by-any-other-name is not acceptable. Heads should roll, and I’m not being funny.
-Ken
Yes… How can we help roll heads and put them all in orange jumpsuits?
Hostile attitudes are maintained to keep people away! … I’d like to get a lot closer and burn em up!… What I mean is ……expose them and dispose of them. They shouldn’t be leaders of anything!. Scam artists at best! Im raging! I’d buy the orange jumpsuits if our state is really broke!….my head is rolling is yours?
Fred, Cabrera started doing work with TRS money managers on my watch so I’ll answer your question directly. He walked in the front door, set up meetings to get acquainted with TRS and did all the heavy lifting with the managers to get the brokerage business. No Eddie Burke calls ever. He is an incredibly hard working guy who got whatever he got at TRS fair and square. TRS had no affiliation with that Valor Realty thing and all I know about it is what I’ve read in the media.
It’s probably worth noting that Cabrera and the 4 other minority-owned brokers on TRS’s Top 20 list had to meet the same fiduciary requirements as Goldman and Citigroup in order to work for TRS’s money managers. Let me know if you have more questions and I’ll do my best to answer them. Jon