The New York Times reports this morning that NY City Comptroller Scott Stringer is charging Wall Street with savaging the city's pension fund returns through a system of fees that drained profits over the past decade:
Headlined Wall Street Fees Wipe Out $2.5 Billion in NYC Pension Gains the article reports:
Until now, Mr. Stringer said, the pension funds have reported the performance of many of their investments before taking the fees paid to money managers into account. After factoring in those fees, his staff found that they had dragged the overall returns $2.5 billion below expectations over the last 10 years.“When you do the math on what we pay Wall Street to actively manage our funds, it’s shocking to realize that fees have not only wiped out any benefit to the funds, but have in fact cost taxpayers billions of dollars in lost returns,” Mr. Stringer said.