Business Roundtable v. SEC: The Battle for Access (The Need for More Data) (Part 6C)

To support the importance of unions and government pension funds, the Brief includes the following footnote:

• Union and government funds are larger institutions than many of the companies subject to the Rules. The average market capitalization of an S&P 500 company is $21.6 billion. See Standard & Poor Indices, S&P 500, available at http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500- usduf--p-us-l--. Amicus curiae CalPERS states that it has approximately $190 billion under management, CRI 595 at 2, while amicus curiae CalSTRS states that its portfolio is valued at $135 billion. CRI 627 at 1.

The statement is designed to show the economic power of unions and "government funds."  It misses the mark.  First, the footnote speaks to union and government funds but actualy has no data on the size of union funds.  Second, the footnote compares two large funds (CalPERS and CalSTRS) to an "average."  A comparison of like to like would have been more informative.  Thus, CalPERS with $190 billion under management might be compared to say Apple with a market cap of around $300 billion.  Third, the comparison makes no mention of corporate pension funds.  The one for General Motors at the end of September 2009 was around $100 billion and presumably is worth more.

Assorted briefs and motions in this case can be found at the DU Corporate Governance web site.