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FBN’s Charlie Gasparino on uncovering a J.P. Morgan report on unfunded pension liabilities facing state and local governments across the country.
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This point because all these guys were fixated on what happened with a two billion dollar trade.
Up four trillion dollar mess reported by no less than Jaime diamonds own firm.
JPMorgan Chase only we mere mortals were not supposed to see that report and the firm's top clients they were the ones who was close to see it and only then.
But somehow it slipped into one Charlie Gasparino hands imagine that I have no idea -- does this.
But he did this and now everyone's furious at least at that -- and some in Washington about this Charlie's got the details.
Charlie who's here today -- -- but this this is having you know this is more stinging -- and it came up in that conference today spell -- out well.
It's it's real money it's a real problem I mean we hear we read about it every now and then no one pays much attention to and we just let it go.
It's this notion of unfunded pensions public pensions that basically on the water and they're on the water meaning that they all money that the public.
New York city New York State California Massachusetts they all over money into their public pension funds and when you add it all up -- It's bigger than anything -- -- JPMorgan we're talking about and this is it the irony here JPMorgan put out this confidential report.
Which they just gave to their best customers.
We got a copy of it and in that report it says you're talking about a five trillion dollar probably talking about a massive massive.
No -- to -- -- off right I mean you have you aside I guess you could raise taxes -- you could.
Cut spending a lot you can do both a lot but would take a lot of -- to even remotely a -- I mean it is just if you read this report and we wrote about I wrote about it on foxbusiness.com.
-- for all of our viewers right now and -- -- after the show by the way or or during -- O Reilly's.
Breaks but it did that that this is incredible -- is phenomenal reported to get to that the headlines here.
But deadlines is at its state and local governments out -- telling us well you know -- US -- founded unfunded liabilities at least you owe money into the pot of a public public employee pension funds but it -- in total it's it's to the tune of less than a trillion dollars.
You know they're talking at JPMorgan when they studied this in the report came out last year that it's 45 times that much we're talking about 4000000000005 trillion -- big.
Big box and the public and the solutions -- -- -- this is what really got me in the report and as I said it on you know in the story I wrote.
I go through what JPMorgan said -- solutions.
They're pretty on palatable massive cuts to these programs.
You know tax increases if you wanna go that way.
You know you basically telling Wu state and local workers that yes you have to pay in just like everybody else.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Chris Christie Scott walked her Rick Scott in Florida.
All the stuff you guys are doing is barely scratching the surface you're gonna have to gold really long really.
I think produced some states are worse than others I would say Chris Christie state is one of the ones at a worst and others New Jersey has a massive.
Unfunded -- a public pension fund liability.
I JPMorgan.
-- use them as an example as as a matter of fact and I one of the ways that it was you know drastic cuts in spending.
You know a tax increase obviously.
That's part of it but.
You know workers have to -- the putting more money -- the average retirement age has to go out.
These are all things that drive that that they create social strife as you saw in Wisconsin when Governor Walker wanted to do it and I don't.
So what does really it is in this dividends you know -- on the surface here I mean the well they just aren't addressed here is beyond that.
Right I I mean I think he's laying the ground absolutely absolutely because when you when you get rid of collective bargaining we get into that -- -- the show.
That allows you to take the steps to do what would JPMorgan -- is is asking to be done really it.
It is about uncertain but if you do on -- -- why wasn't this mentioned to me why I know there are some legal issues involved they could be quite goals of the -- -- ticket -- Why didn't.
Jamie Dimon raises and say you know you guys are all over me on this I've got a four trillion dollar bond sell for -- Right you know I I I just say you know I don't know Jamie Dimon knows about the study I will tell you this senior management fairly senior manager and inside JPMorgan.
Chose to keep this largely secret could remember JPMorgan also on the right sponsor of the same states and localities are very good point at this stuff.
And they just don't wanna Ankara and that's why they kept its largely secret they send it up to large clients didn't send it out their body else.
Parliament -- -- give folks a thousand times and a lot of you just still look elsewhere.
That's the reason why he's the best business reporter on the planet he gets his stuff and humiliate and destroys so many careers in so doing.
-- -- for a great job and -- and great job on covering ministers the latest.
