TIAA subpoenaed

[Mr._Graybeard]

I don't see a thread on the NY Times story about the NY attorney general ordering TIAA to disclose information about its sales practices, citing reports that workers were pressured to sell products that are more profitable for the company. https://www.nytimes.com/2017/11/09/business/tiaa-subpoena.html

Too bad ... I had always thought of TIAA as one of the good guys out there.

 

[calmloki]

+1. Not sure that it is other than normal sales practice to try and sell the product that is most profitable for the company. The time we were with TIAA was very good and we have high respect for them - we left them because our moving of large chunks of money seemed too businesslike to them - they were right, repeated loaning to flippers is kinda outside the pale for a high interest savings account.

What's next? Costco charged with running a sweatshop? National Park service growing vast fields of opium poppies?

 

[audreyh1]

TIAA was a nonprofit that became a for profit investment company, right? The change was in 2010. Perhaps that's where some of the concerns are coming from as it's the only investing option for many public employees such as teachers, etc.

 

[Mr._Graybeard]

A big change also came in 1997, when Congress revoked the tax-exempt status of their pension plan. That tax exemption also limited their service to mostly employees of educational institutions. After the revocation, TIAA started branching out investment services to broader markets.

Here's a webcached link to a Morningstar article that looks insightful in the wake of the NYAG's action.
http://webcache.googleusercontent.com/search?q=cache:MfMdj9vIlVMJ:ibd.morningstar.com/article/article.asp%3Fid%3D339450%26CN%3Dbrf295,http://ibd.morningstar.com/archive/archive.asp%3Finputs%3Ddays%3D14%3BfrmtId%3D12,%2520brf295+&cd=32&hl=en&ct=clnk&gl=us