SEPTA sues Goldman Sachs over bonuses
SEPTA has filed suit against Goldman Sachs investment bank, which mananged its pension funds. The suit claims the bonuses paid to Goldman Sachs executives harmed SEPTA’s returns.
SEPTA has filed suit against Goldman Sachs investment bank, which mananged its pension funds. The suit claims the bonuses paid to Goldman Sachs executives harmed SEPTA’s returns.
Like most investments, SEPTA’s pension fund has lost money due to the recession. But in a lawsuit filed in Delaware, SEPTA claims it also lost money because Goldman Sachs funneled an unreasonable percentage of SEPTA’s earnings into pay for Goldman Sachs employees.
Goldman Sachs has said the lawsuit is without merit.
SEPTA spokesman Richard Maloney says the agency seeks damages to replenish its pension fund.
SEPTA invests pension money in the market – we have over million dollars invested in Goldman Sachs. We believe the value of stock has dropped because of fees that management has taken up there.
Goldman Sachs is one of several investment managers for the pension plan, which covers about 9,000 union employees.
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