Montgomery County Commissioners Bruce Castor (R) and Josh Shapiro (D) both harbor ambitions to be governor of Pennsylvania. And both supported the plan to dump Wall Street (Goldman Sachs, JPMorgan) and hometown (Emerald, Valley Forge, Swarthmore, Ira Lubert) investment managers and turn pension cash over to lower-fee Vanguard Group and SEI.
They say the giant SERS and PSERS systems, those laboratories for every aggressive, high-fee buyout, venture, hedge, commodity, swap and overlay trading product to sweep down the road over the past 20 years, ought to fire hundreds of private managers and just buy index funds.
Will money managers (and their Shore real estate agents and luxury-car dealers) take this lying down? Or will Pa. politicians who are more comfortable with the current arrangements (Gov. Tom Corbett (R), Treasurer Rob McCord (D)) rescue the industry and keep the fees rolling? More in my column in today's Philadelphia Inquirer here.