Money Managers Colluding to Fix Markets

Money Managers Colluding to Fix Markets

This is not the usual effort of companies conspiring to fix markets or prices.

This is broader and potentially far more impactful.

The effort is known as Climate Action 100 (CA100+), a group of money managers, investors, who have ganged up to force companies to change their businesses so as to cut CO2 and GHG emissions.

Here is how Bloomberg described them: 

“This group of shareholders has become the biggest, richest, and possibly the most benevolent bully the corporate world has ever seen.”

Bloomberg also describes CA100+ as believing “companies should detail exactly how climate change will affect their business, so shareholders can pull money from those that aren’t preparing for the future.”

But CA100+ is not benevolent. And who decides the future?

CA100+’s efforts are to get shareholders to “pull money” which assumes there are only negative consequences from climate change, ignoring that there may be few, if any, negative consequences. 

Quoting Bloomberg:

“[CA100+] also wants companies to align capital spending decisions with efforts to limit global warming to less than 2C (3.6F). And it wants them to stop funding groups that lobby against those goals.”

CA100+ has been successful in forcing Shell, for example, to shift investments from oil to industries having fewer GHG emissions.

A review of Climate Action 100+ website describes their activities as:

“Global Investors Driving Business Transition”

They explain:

“[CA100+ consists of] 323 investors from across dozens of countries, who collectively have more than USD $32 trillion in assets under management.”

What does this mean for the average American investor?

It means their investments and retirement plans are being manipulated by a small, but rich group, who are trying to rig the markets.

Here is a picture of some energy companies being targeted by CA100+:

From Bloomberg Business Week

And here is a picture of some Materials and Industrial companies being targeted.

But what about the companies supplying them? American companies such as Joy, Cummins, and others.

And look at the Industrial companies being targeted: GE, Boeing, and United Technologies.  

Think of the hundreds of smaller American companies and their employees who will be indirectly targeted by CA100+.

How will Americans employed by these companies fare?

From Bloomberg Business Week

And what about the millions of Americans whose retirement plans are built around investments in these companies?

Those 323 investors who are participating in CA100+ are conspiring to diminish, if not destroy, the targeted companies. 

The Justice Department and SEC need to investigate this conspiracy, possibly based on at least two legal principles.

  1. As a group, these investors are trying to establish a monopoly for wind and solar companies.
  2. CA100+ is risking the investments of American citizens by assuming CO2 is the cause of global warming, so that if CO2 is not the cause, investors will have been harmed by CA100+’s efforts which have damaged targeted companies and diminished their potential earnings.

These are real risks as opposed to the theoretical and unproven risks from climate change.

The 323 investors  of CA100+ are listed on the CA100+ website, with a majority of them from outside the United States. The US investment organizations who are participants of CA100+ should be subject directly to US antitrust law. Retirement funds such as CALPERS should also be investigated for risking pension fund assets in this way.

Every American needs be aware of this danger.

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