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mahatmakanejeeves

(57,680 posts)
Sat May 9, 2020, 08:26 AM May 2020

Trump eyes federal retirement plan investments as part of showdown with China over coronavirus

Source: Washington Post

Politics

Trump eyes federal retirement plan investments as part of showdown with China over coronavirus

By Lisa Rein, Robert Costa and Eric Yoder
May 8, 2020 at 8:25 p.m. EDT

President Trump's intensifying showdown with China over its handling of the coronavirus pandemic is expanding to a new battlefield: the retirement portfolios of 5.9 million federal employees and U.S. service members.

In recent days, White House officials have moved to seize control of a little-known board that administers the $557 billion federal retirement program for most active and retired federal employees and military members, with some aides eager to halt the flow of billions of dollars into an index fund that includes Chinese companies, according to two White House officials and an outside Trump adviser involved in the discussions.

Trump on Monday nominated three members to replace the majority on the Federal Retirement Thrift Investment Board, made up of five investment experts who oversee the retirement plan. All of their four-year terms have expired, and Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Nancy Pelosi (D-Calif.) have not replaced those serving in the two seats they control.

With its new nominees, the White House is taking steps to block the plan's $40 billion international fund from investing in a fund that contains about 11 percent of China-based stocks, according to people familiar with the strategy. ... "Obviously, the president doesn't want this investment to take place and is looking for other alternatives," said a senior administration official who was not authorized to speak about the nominations. "These individuals will be key to making that happen."

{snip}

Trump's nominees to the board are Frank Dunlevy, counselor to the chief executive officer of the U.S. International Development Finance Corporation; Christopher Bancroft Burnham, chairman and co-founder of Cambridge Global Capital, a District-based investment firm, and John M. Barger, managing director at NorthernCross Partners, an investment firm in Los Angeles. ... Burnham declined to comment. Dunlevy and Barger did not immediately respond to requests for comment.

{snip}

Several of the president's favorite news outlets also began running segments on the obscure board and its investment strategy, including Fox News. (1) Sinclair Broadcast Group ran a report on April 30 that said the president had instructed top aides to "rein in" the retirement savings plan before it expanded its investment portfolio to include Chinese-held entities that U.S. officials believe are tied "directly to the Chinese military and to the country's global intelligence apparatus." (2)

Alice Crites and Anne Gearan contributed to this report.

Lisa Rein
Lisa Rein covers federal agencies and the management of government in the Trump adminstration. At The Washington Post, she has written about the federal workforce; state politics and government in Annapolis, and in Richmond; local government in Fairfax County, Va. and the redevelopment of Washington and its neighborhoods. Follow https://twitter.com/Reinlwapo

Robert Costa
Robert Costa is a national political reporter for The Washington Post. He covers the White House, Congress, and campaigns. He joined The Post in January 2014. He is also the moderator of PBS's "Washington Week" and a political analyst for NBC News and MSNBC. Follow
https://twitter.com/costareports

Eric Yoder
Eric Yoder is a National reporter at The Washington Post. He has reported for The Post since 2000, concentrating on federal employee issues, the budget and government management policies. Follow https://twitter.com/EricYoderWP

(1) https://www.foxnews.com/media/michael-waltz-americans-wake-up-call-china-military-investments

(2) https://wjla.com/news/nation-world/exclusive-white-house-to-block-federal-pension-fund-from-expanding-china-investments

Read more: https://www.washingtonpost.com/politics/trump-eyes-federal-retirement-plan-investments-as-part-of-showdown-with-china-over-coronavirus/2020/05/08/9f9b2058-8fb2-11ea-a9c0-73b93422d691_story.html



I'm one minute over the twelve-hour limit. I'll try to sneak this through anyway, due to its importance.

------

My latest story w/
@Reinlwapo

@EricYoderWP
: The Trump WH is moving closer to bringing federal employee retirement investments into its economic war w/ China. But there is a debate inside the West Wing about just how far to go in weaponizing the portfolios.




Every federal employee and retiree needs to move their money out of the "I" fund NOW!




------

Full disclosure: I closed out my position in the "I" Fund in December. I had no forewarning of this; I just thought it was time to take some money off the table.
17 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Trump eyes federal retirement plan investments as part of showdown with China over coronavirus (Original Post) mahatmakanejeeves May 2020 OP
Thirty Nominations and One Withdrawal Sent to the Senate mahatmakanejeeves May 2020 #1
I'm more worried that board will carry out Trump budget plan to drop interest rates on G fund wishstar May 2020 #2
My guess is that the "I" Fund already does have Chinese investments. mahatmakanejeeves May 2020 #7
Hey! They could buy out Trump's Wash DC hotel (at full asking price of course). keithbvadu2 May 2020 #3
Yeah, avoid China Road bucolic_frolic May 2020 #4
tRump would not understand all these Scarsdale May 2020 #5
Kickin' with disgust Faux pas May 2020 #6
Many pension funds follow some sort of ideology. Igel May 2020 #9
This is just a ploy and pretext.... Wuddles440 May 2020 #8
That's it not fooled May 2020 #13
Get his hands OUT of our funds! elleng May 2020 #10
No kidding. jeffreyi May 2020 #11
trump needs to let the find managers with the domain expertise determine where they want to invest iluvtennis May 2020 #12
We have to be careful with pension investments in China Steelrolled May 2020 #14
Is there nothing that he doesn't Mendocino May 2020 #15
Go ahead, Little Donnie.... SergeStorms May 2020 #16
Waiting for a reporter to ask him now duforsure May 2020 #17

mahatmakanejeeves

(57,680 posts)
1. Thirty Nominations and One Withdrawal Sent to the Senate
Sat May 9, 2020, 08:38 AM
May 2020

This is why I post this stuff.

Thirty Nominations and One Withdrawal Sent to the Senate

NOMINATIONS & APPOINTMENTS

Thirty Nominations and One Withdrawal Sent to the Senate
Issued on: May 4, 2020

NOMINATIONS SENT TO THE SENATE:

John M. Barger, of California, to be a Member of the Federal Retirement Thrift Investment Board for a term expiring October 11, 2022, vice David Avren Jones, term expired.

{snip}

Christopher Bancroft Burnham, of Connecticut, to be a Member of the Federal Retirement Thrift Investment Board for a term expiring September 25, 2024, vice Ronald David McCray, term expired.

{snip}

Frank Dunlevy, of California, to be a Member of the Federal Retirement Thrift Investment Board for a term expiring September 25, 2022, vice Michael D. Kennedy, term expired.

{snip}

wishstar

(5,272 posts)
2. I'm more worried that board will carry out Trump budget plan to drop interest rates on G fund
Sat May 9, 2020, 08:54 AM
May 2020

So far news is only emphasizing preventing just one of the Thrift fund options from not expanding to include Chinese investments.
Politicizing the administration of the Thrift fund is disturbing but probably not too many investors would object if all they do is exclude Chinese investments.

But of more importance to more Thrift fund investors who want to have a least part of their funds in a stable no-risk fund is the Trump proposal to tie the variable interest rate on the G fund to a lower index that would wipe out ability of the fund to come even close to keeping up with inflation. The current indexing of stable G fund has at least given investors close to what a decent 5 yr CD would pay such as 2 to 3% in recent years. Of course it was probably already going to drop to the 1 to 1.5% range but under Trump's plan it would be close to zero.

mahatmakanejeeves

(57,680 posts)
7. My guess is that the "I" Fund already does have Chinese investments.
Sat May 9, 2020, 11:41 AM
May 2020

The new Trump-donor fund managers would arrange to see that the "I" Fund divest these holdings.

The real problem is, why stop there? As long as they're in place, they might as meddle with the other funds.

Thanks for writing.

keithbvadu2

(36,981 posts)
3. Hey! They could buy out Trump's Wash DC hotel (at full asking price of course).
Sat May 9, 2020, 09:05 AM
May 2020

Hey! They could buy out Trump's Wash DC hotel (at full asking price of course).

If Donald is running it, the place must obviously be a wise investment.

.................... For Trump.

Scarsdale

(9,426 posts)
5. tRump would not understand all these
Sat May 9, 2020, 09:29 AM
May 2020

percentages, numbers etc. He is just the one who signs things that other people construct. Mnuchin or someone else is in charge of this. Donnie is busy, he has texts to send. tRump is too stupid to even wear a mask when he is in close proximity to people infected with the virus. Maybe he thinks that his "awesomeness" protects him, that the virus avoids people with orange peel skin?

Igel

(35,382 posts)
9. Many pension funds follow some sort of ideology.
Sat May 9, 2020, 12:06 PM
May 2020

Some have pushes to divest from something that's not sufficiently green, or industries that are considered "societally unhealthy"--now, they may be very popular with most people, but some advocacy group pushes until the managers decide to comply not with the needs of the pensioners, but the needs of the activists.

This is about the same. But the idea of investing a federally pension fund in such an incredibly nationalist, supremacist country seems odd.

I actually tend to think that if the push was to dispose of Chinese assets because of how they treat the Uighurs they'd get more traction. (How they treat the equivalent Xians, not an issue. And we've long since forgotten "Free Tibet". Not that we won, just that we stopped caring about Tibet and started caring about iPhones.)

Wuddles440

(1,129 posts)
8. This is just a ploy and pretext....
Sat May 9, 2020, 12:01 PM
May 2020

to ultimately "restructure" the G Fund, make it virtually worthless, and force employees/retirees into the risker and less stable funds. The CONS have long advocated making such revisions to the G Fund and the Orange Anus has enthusiastically embraced their cause. As with other trust funds, the CONS can't contain their larcenous impulses to enrich themselves at the expense of the entitled recipients.

not fooled

(5,803 posts)
13. That's it
Sat May 9, 2020, 02:55 PM
May 2020

and I know federal employees who voted republican. Wonder what they're thinking now.



Heriturd Fuckdation is writing the playbook, i.e. 666kook666 brother(s).

iluvtennis

(19,885 posts)
12. trump needs to let the find managers with the domain expertise determine where they want to invest
Sat May 9, 2020, 02:26 PM
May 2020

monies. everything don the con touches vanishes. Keep. His. Hands. Out.

duforsure

(11,885 posts)
17. Waiting for a reporter to ask him now
Sun May 10, 2020, 05:50 AM
May 2020

If China had a lot of dirt on him and offered it to Biden, would that be illegal for him to accept and use it against him? If China funneled money into his and Congress campaigns would he have Barr charge them for it? If China cut off all components of what used for most of our prescription drugs hurting millions here , especially the elderly what would he do? Do you and members of your family produce products in China? Is this being leaked out for trump to promote he's strong against China , when he isn't? I think that's what this is. All for pr , then he'll accuse Biden of being weak on China. This is how he's done numerous times before to promote what he wants to use against others with. The opposite of the truth is what trump does, all the time. I think this is more trump campaign bs , nothing else.

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