US federal employees don't need Chinese stocks in 401(k)s: Secretary Scalia
Federal investment funds investing in Chinese stocks creates a national security issue says Trump's team
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Federal employees don’t need Chinese stocks in their 401(k)s, said Labor Secretary Eugene Scalia, during a FOX Business interview on Tuesday.
TRUMP ORDERS FEDERAL RETIREMENT MONEY INVESTED IN CHINESE EQUITIES TO BE PULLED
Scalia's comments come one day after FOX Business exclusively reported that President Trump was moving to eliminate investments in Chinese equities by U.S. federal retirement funds.
“This concerns what we call the Thrift Savings Plan. It’s the 401(k) plan for federal employees,” he said. “It’s the largest 401(k) in the world, [including] about 1.3 million veterans. The question was whether we were going to put our military men and women, and other federal workers, in a position where if they wanted to invest in international markets, they were going to have to invest in Chinese companies,” Scalia said, adding that some of these investments could pose a threat to national security.
TRUMP ORDERS FEDERAL RETIREMENT MONEY INVESTED IN CHINESE EQUITIES TO BE PULLED
The secretary alluded to a “lack of integrity to financial statements of Chines companies,” which he also called out in letters Monday, warning the Federal Retirement Thrift Investment Board that its plan to invest federal retirement savings could place billions of dollars in “risky companies.”
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WH to Sec Scalia (002) by FOX Business on Scribd
In the first letter, obtained by FOX Business, National Economic Council Chair Larry Kudlow and National Security Adviser Robert O’Brien wrote to Scalia saying that the White House does not want the Thrift Savings Plan to have money invested in Chinese equities, emphasizing that the board is departing from the “Board’s established index for the International Stock Investment Fund (I Fund) to track one that maintains Chinese equities is risky and unjustified.”
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The letter links China’s coronavirus response as one reason investments shouldn't happen.
In a second letter, Scalia writes to Chairman of the Federal Retirement Thrift Investment Board Michael Kennedy, noting “grave concerns with the planned investment.”
Sec Scalia to Chairman Kenn... by FOX Business on Scribd
The secretary said he wants a response by Wednesday.