Sunday, April 26, 2009
John Bogle Lives!
Gretchen Morgenstern cites John Bogle, a Vanguard Group founder, 12 April at http://www.nytimes.com/2009/04/12/business/12gret.html. "In his view, the agents have failed to serve their clients--mutual fund shareholders, pension beneficiaries and long-term investors; instead the agents have served themselves. ... In the face of all this, Mr. Bogle suggests that we force our agents to relearn what being a fiduciary means. ... Some money management firms are publicly traded themselves, and Mr. Bogle says that those firms offer an added layer of deep and serious conflicts because executives running them try to serve two masters: their shareholders and their fund clients".
Adoph Berle, Columbia University law professor, and member of FDR's "Brain Trust", wrote of this in 1932 in The Modern Corporation and Private Property and 1959 in Power Without Property. This story brings to mind a fine 1956 move, "The Solid Gold Cadillac", with Judy Holliday. If you get a chance, see it. We need more proxy fights. The first one I would like to see is at: Goldman Sachs (GSG). Who should be able to vote as a GSG shareholder? Any registered voter in the US. We financed its salvation, directly and through the AIG bailout. We own it, we should run it. If Lloyd Blankfein doesn't like it, tough. Let him quit.