January 15, 2025 • 5 mins
Chris breaks down the recent court ruling against American Airlines for prioritizing ESG (Environmental, Social, and Governance) and DEI (Diversity, Equity, and Inclusion) investments over the financial interests of employees’ 401(k) funds. He explores the lawsuit's implications under ERISA, critiques the Biden administration’s protection of major investment firms like BlackRock, and highlights the predictable underperformance of ESG investments. Markowski emphasizes the importance of competence over ideological agendas in financial decision-making. www.watchdogonwallstreet.com
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Yeah ESGDI blowing up four one keys. We told you so,
Yeah we did. A district court ruled that American Airlines
failed to prioritize the financial interests of its employees retirement
(00:37):
funds by enabling fund managers to pursue environmental, social, and
governance investments. This is interesting. I'll tell you why. This
is interesting in more ways than one. There was a
lawsuit lawsuit back in twenty twenty three filed against American
Airlines and the company's Employee Benefits Committe, alleging that the
(01:01):
defendants violated their duty of loyalty under the ARISA Employee
Retirement Income Security Act, which requires a fiduciaries managing retirement
investments must act in the best financial interests of their participants.
What did they.
Speaker 1 (01:16):
Do?
Speaker 2 (01:17):
They hired investment managers that were all in DEIESG and
their four oh one k's underperformed the markets by a lot,
by a lot, So It's funny about this is that
(01:40):
Joe Biden was twenty two. I can't remember the exact
year it was twenty twenty two, it was the day.
It was a Friday after Thanksgiving signed a law basically
protecting advisors, the black Rocks of the world to Goldman, Sachson,
(02:01):
Morgan Stanley's from any sort of lawsuit with their ESGDI
products that they were putting together. See, this suit doesn't
name the actual money managers, Okay, the advisors that we're
hired to put these together. It actually goes after the
company itself for hiring them, which is funny if you
(02:25):
think about it. They can't sue Black Rock, They can't
sue any of the big brokerage firms out there that
put these products together because Biden said no, no, no, no,
no no no, it's they're going to go after American Airlines,
and I get it. But then you know your American
airlines and you get a phone call from Joe Biden
and his uh well, it's his people, his henchmen. Okay,
(02:46):
the Obama people saying you better start doing this or else.
Okayet we played it out. We told you all of
this stuff was going to happen again. It's amazing to me.
You left wingers out there, you destroy everything.
Speaker 3 (03:06):
Whatever you do, you end up wrecking everything.
Speaker 2 (03:12):
This was just plain as day that this was going
to underperform. This was going to be absolute utter dog
shit as far as investments were concerned. And we we're
right again. I gotta go back in time a little bit.
Got to go back in time here a little bit.
When I mentioned this, I was went to Buffalo, New York.
(03:37):
Went to Buffalo, New York too. Uh. There was a
firm that was interested in having us take them over,
having Markowski Investments take them over. And I went up
there and met with this firm, and I mean these
people were far left. I looked at how they were
investing their their client's money. They had everything, every everything
(04:00):
set up, and like, oh yeah, it's socially conscious, it's
esg And I'm like, okay, I mean, do you want
your clients to lose money? But that was their pitch.
I mean maybe some people they don't care, they don't can.
Maybe they're interested in actually watching their money grow. They'd
(04:23):
rather flush it down the toilet and some bs pie
and a skycrap.
Speaker 3 (04:27):
Even gonna make sure every board has lgbtq's and every gender.
Speaker 2 (04:33):
I mean, it's just so stupid.
Speaker 3 (04:36):
Oh, our strength is our diversity. No, it's not okay,
Diversity is not strength. Competence. Competence is strength. That is
one of the biggest bunches of bullshit. Are diversity is
our strength? You're so full of crap. It's not funny.
(04:58):
Competence is a strength.
Speaker 2 (05:03):
Anyway, again, I had to go off on a rant
there watchdog at Wall street dot Com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Yeah ESGDI blowing up four one keys. We told you so,
Yeah we did. A district court ruled that American Airlines
failed to prioritize the financial interests of its employees retirement
(00:37):
funds by enabling fund managers to pursue environmental, social, and
governance investments. This is interesting. I'll tell you why. This
is interesting in more ways than one. There was a
lawsuit lawsuit back in twenty twenty three filed against American
Airlines and the company's Employee Benefits Committe, alleging that the
(01:01):
defendants violated their duty of loyalty under the ARISA Employee
Retirement Income Security Act, which requires a fiduciaries managing retirement
investments must act in the best financial interests of their participants.
What did they.
Speaker 1 (01:16):
Do?
Speaker 2 (01:17):
They hired investment managers that were all in DEIESG and
their four oh one k's underperformed the markets by a lot,
by a lot, So It's funny about this is that
(01:40):
Joe Biden was twenty two. I can't remember the exact
year it was twenty twenty two, it was the day.
It was a Friday after Thanksgiving signed a law basically
protecting advisors, the black Rocks of the world to Goldman, Sachson,
(02:01):
Morgan Stanley's from any sort of lawsuit with their ESGDI
products that they were putting together. See, this suit doesn't
name the actual money managers, Okay, the advisors that we're
hired to put these together. It actually goes after the
company itself for hiring them, which is funny if you
(02:25):
think about it. They can't sue Black Rock, They can't
sue any of the big brokerage firms out there that
put these products together because Biden said no, no, no, no,
no no no, it's they're going to go after American Airlines,
and I get it. But then you know your American
airlines and you get a phone call from Joe Biden
and his uh well, it's his people, his henchmen. Okay,
(02:46):
the Obama people saying you better start doing this or else.
Okayet we played it out. We told you all of
this stuff was going to happen again. It's amazing to me.
You left wingers out there, you destroy everything.
Speaker 3 (03:06):
Whatever you do, you end up wrecking everything.
Speaker 2 (03:12):
This was just plain as day that this was going
to underperform. This was going to be absolute utter dog
shit as far as investments were concerned. And we we're
right again. I gotta go back in time a little bit.
Got to go back in time here a little bit.
When I mentioned this, I was went to Buffalo, New York.
(03:37):
Went to Buffalo, New York too. Uh. There was a
firm that was interested in having us take them over,
having Markowski Investments take them over. And I went up
there and met with this firm, and I mean these
people were far left. I looked at how they were
investing their their client's money. They had everything, every everything
(04:00):
set up, and like, oh yeah, it's socially conscious, it's
esg And I'm like, okay, I mean, do you want
your clients to lose money? But that was their pitch.
I mean maybe some people they don't care, they don't can.
Maybe they're interested in actually watching their money grow. They'd
(04:23):
rather flush it down the toilet and some bs pie
and a skycrap.
Speaker 3 (04:27):
Even gonna make sure every board has lgbtq's and every gender.
Speaker 2 (04:33):
I mean, it's just so stupid.
Speaker 3 (04:36):
Oh, our strength is our diversity. No, it's not okay,
Diversity is not strength. Competence. Competence is strength. That is
one of the biggest bunches of bullshit. Are diversity is
our strength? You're so full of crap. It's not funny.
(04:58):
Competence is a strength.
Speaker 2 (05:03):
Anyway, again, I had to go off on a rant
there watchdog at Wall street dot Com
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!