Get ready for a new level of outrage in the Madoff affair. His victims weren’t just wealthy Jews, faux-elite Greenwichites and European private bankers, he hurt the blue-collar working man, too. CNBC’s Charlie Gasparino reported today that a carpenter’s union was a big loser, too. Actually, a huge loser:
CNBC has learned that one union, the Carpenters local in Syracuse, N.Y., has lost the majority of the $100 million to $150 million it had in pension money because of its dealings with Madoff, people close to the matter said. The union’s money manager, J.P. Jeanneret Associates of Syracuse, didn’t return a telephone call for comment.
The Syracuse carpenters local isn’t alone. Pat Morin, business manager of Empire State Carpenters Union, is sifting through the wreckage in his own portfolio, which at the end of June had around $800 million in assets under management. Morin says his fund has exposure to Madoff as well, largely the result of consolidation in union pension funds where locals like Syracuse had transferred money to his oversight.
Of course, this opens up a whole new level of clawback complications? Do retired carpenters have to give back some of their retirement checks? The mind boggles.