The Schwabbing of Social Security

    The fingerprints of Wall Street have been all over the scam to privatize Social Security. And, rightly so, the labor movement has been targeting brokerage firms who have been whoring for the privatizaton schemes. Two of those firms--Edward D. Jones & Co., and Waddell & Reed--have felt the pressure and withdrawn from the pro-privatization coalition. Next up: Charles Schwab.

    Turns out that the company’s chairman and CEO, Charles “Chuck” Schwab, is a longtime supporter of diverting Social Security funds into private accounts. According to a backgrounder put out by the AFL-CIO, "he endorsed a book on the subject in 1999. In November, Schwab officials were part of a select group of business advocates of privatization that met with White House officials about business support for the initiative. Unlike rivals Edward D. Jones & Co. and Waddell & Reed, Schwab remains a member of the Alliance for Worker Retirement Security (AWRS),the leading business-backed coalition set up to promote Social Security privatization."

    Schwab also bankrolled the Cato Institute, a think tank that has long been pushing for privatization.  As the AFL-CIO describes it, "A 1983 article in the Cato Journal recommended waging 'guerrilla warfare' against Social Security and said financial institutions that stood to benefit would be an 'obvious element' in a pro-privatization constituency." So, more than two decades ago, the ground was being laid for financial brokerage firms, who would benefit handsomely from privatization, to play a role in the rhetorical war against Social Security.

    So, here's something to do to put the pressure on Schwab: send an e-mail to Chuckie and tell him to take his greedy hands off Social Security and stop funding the destruction of one of America's great social achievements.

Comments

[Rand Wilson]

Are any readers Schwab clients?

The Charles Schwab Corporation is a major backer of the risky plan to privatize Social Security. Chairman and CEO Charles R. Schwab is a longtime supporter of diverting Social Security funds into private accounts. The Schwab Corporation has supported the Cato Institute and the Alliance for Worker Retirement Security, two of the most important groups lobbying for the Bush Administration's plan. The Schwab Corporation is also a leader in an industry association that has promoted privatization, the Securities Industry Association.

Hundreds of Schwab clients have signed an open letter to Charles Schwab asking the company to cease all participation in efforts to privatize Social Security. The letter will be delivered to Charles R. Schwab and the entire Board of Directors on May 19 at the company's annual meeting at San Francisco's Four Seasons Hotel. There is still time to sign the open letter by visiting www.schwabgreed.org to add your name!

Please also consider attending a rally just before the Schwab annual meeting that will feature shareholders and clients speaking out about how Schwab's support for privatization is jeopardizing the integrity of the company. The rally will be on May 19 at 12:00 PM in front of the Four Seasons Hotel, 765 Market Street, San Francisco.

Clients and/or shareholders interested in joining a delegation to attend the Schwab annual meeting should call 510-663-4052.