December 15, 2018

What Happens to Your Money? Authors Speak on Financial System’s Failures, May 22

Stephen Davis

Stephen Davis

CHESTER – Every year, Americans pay billions of dollars in fees to those who run our financial system. The money comes from our bank accounts, our pensions and our borrowing, and often we aren’t told that the money has been taken. These billions may be justified if the finance industry does a good job, but as an important new book shows, it too often fails us.

This is the message of the three authors of the book, What They Do With Your Money, two of whom will be at a free Books & Bagels program open to all at 9:30 a.m., Sunday, May 22, at Congregation Beth Shalom Rodfe Zedek in Chester.

Stephen Davis and Jon Lukomnik will talk about the ways that financial institutions place their business interests first, charging for advice that does nothing to improve performance, employing short-term buying strategies that are corrosive to building long-term value, and sometimes concealing both their practices and their investment strategies from investors.

Praise for the book comes not only from international authorities but from former U.S. Senator Christopher J. Dodd, co-author of the Dodd-Frank legislation intended to prevent a repeat of the banking system collapse that occurred in 2008. Dodd says, “As only insiders can, Davis, Lukomnik, and Pitt-Watson shine a spotlight on hidden cracks in the system that can still put hard-earned savings at risk. This is a vital book for anyone concerned about how to make the finance industry generate wealth for all of us.”

Along with their third collaborator, David Pitt-Watson, Davis and Lukomnik also wrote the prizewinning book, The New Capitalists, in which the authors demonstrated how ordinary people are working together to demand accountability from even the most powerful corporations.

Jon Lukomnik

Jon Lukomnik

The three address such issues from authoritative academic perspectives. Davis is a senior fellow at Harvard Law School’s program on corporate governance. (He is also president of the board of the Chester synagogue.) Lukomnik is executive director of the Investor Responsibility Research Center. David Pitt-Watson is the former head of the Hermes shareholder activist funds in Europe and an executive fellow of finance at the London Business School.

Congregation Beth Shalom Rodfe Zedek is located at 55 East Kings Highway in Chester. As always for the Books & Bagels programs, the program is open at no charge to the public, and reservations are not required.  For more information about CBSRZ, visit cbsrz.org or call the office, 860-526-8920.

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