Several senior leaders in Advisory Seevices have been axed this week. I hear more leaders will be axed
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When will the ratings agencies wake up? Every year TIAA uses smoke and mirrors in their accounting to avoid telling clients the truth...they are losing institutional business. The say they are an open book but let me ask you this, Is there ever ANY management discussion of results? Can anyone look up a trendline on the percentage growth rate of executive salaries and benefits versus the growth rate of client declared dividends? It's a rhetorical question because the answer is "NO". Has management ever explained the drag on dividends presented by the $5 BILLION dollars in surplus notes issued by TIAA? Have they ever explained that the proceeds from surplus notes are counted as assets , but the debt is not counted as a liability???? That means that $5 BILLION of their $38 Billion in Capital & Surplus is actually a DEBT accruing interest???? They are misleading their clients about the financial results and strength. Money going to pay interest on the $5 Billion in surplus notes is money that could be paid to clients in dividends...which went DOWN again in the last annual report. And for all their "investments" in Nuveen, in Evergreen Bank, in the GE Medical Equipment financing business they bought, where the hell is the increased revenues and financial performance?? . (WTF was with buying a medical equipment finance business anyway?? where is the business logic in that??, it makes as much sense as if Disney bought a shock absorber business. If TIAA was a publically traded company, they'd be getting SAVAGED by the street on their lack of performance and lack of transparency. They never have to answer any tough questions on their bonehead decisions or weak results. The ratings agencies are going end up with egg on their face when the CFO can no longer play games with the malleable lines in the balance sheet like "deferred tax asset" anymore. Danger ahead folks. Danger ahead.
Good. Never worked for a leadership team so completely bereft of ethics in the way they treated professionals reporting to them. I hope they got fired in the same ambush style they used on so many advisors. I hope someone wrecked their U4. At least THEY did more to deserve it than just question the desperate push for managed money. Really, they are the only employer I ever came to despise for their hypocrisy. “Most ethical company?” In a pig’s eye!!