Halftime Score: Teachers Have Lead Over Billionaire Fund Managers

Don’t underestimate the power of teachers and their unions. First, teachers have over $1 trillion invested in various pension funds. They hire savvy firms to maximize returns.

That has changed as politically-motivated fund managers have take strong stands against their client-unions.  As the Wall Street Journal reports, investment gurus such as Daniel Loeb, Paul Singer and dozens of other hedge-fund managers have poured millions of dollars into promoting charter schools in New York City and into groups that want to revamp pension plans for government workers, including teachers.

Now, Randi Weingarten, leader of the American Federation of Teachers, is fighting back—and she is playing hardball. 

First, her union is pulling large investments from these politically-motivated fund managers. But that’s just the start.

Her union federation is funding a lobbying campaign to eliminate the “carried-interest” tax rate on investment income earned by many money managers. If that passes, it'll hit Wall Street investment firms in their personal pocketbooks.

The union has also filed a class-action lawsuit accusing 25 Wall Street firms of violating antitrust law and manipulating Treasury bond prices.