Wednesday, January 26, 2011

They Fired the Bank Trustee . . .

After three unsuccessful attempts a money manager won a seat on a board that oversees trust funds for a town here on the New Hampshire seacoast. The board then decided to fire TD Bank as investment manager. (I'm only guessing, but the town trust funds probably didn't fare much better in the Great Recession than, say, Harvard's endowment.)

Luckily, the new board member was willing to step in and do a better job. He'd even do it without pay, save for a custodial fee.

What could possibly go wrong? Quite a bit, judging from this article.

Folks who serve on town boards hereabouts are not usually financial sophisticates. Because folks serving in similar positions in other parts of the country may not be either, consider this post a cautionary tale.

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