Ohio Pensions Took $480 Million Hit Following Lehman Brothers Collapse

Washington, DC - John Kasich's eight years at Lehman Brothers is coming under new scrutiny today after workers in Ohio with SEIU District 1199 launched a new television ad showing the way in which Kasich got rich at Lehman Brothers while Ohio seniors lost their pension money.

The television ad opens with contrasting clips from 2010 and 2008 which underscore the way in which Kasich, who used to say I do work on Wall Street," is now seeking to distance himself from Lehman Brothers.

According to the Columbus Dispatch (May 12, 2010), Kasich "tried to persuade two state pension funds in 2002 to invest with Lehman Brothers while he was the managing director of the investment banking house's Columbus office."

Despite only claiming two contacts Kasich also called a third pension fund in 2002 and tried to pitch Lehman's brokerage services.

Following the collapse of Lehman Brothers, Ohio pensions took a $480 million hit, according to the Associated Press (April 2, 2010).

Kasich, who is now running for governor of Ohio, made nearly $590,000 in salary and bonuses as a Lehman Brothers managing director in 2008 before the banking giant collapsed later that year (Associated Press, 4/2/10)

The new ad, which is a significant statewide buy, is scheduled to run for one week. The ad was launched by SEIU District 1199 which represents more than 35,000 health care and social service workers across Ohio, West Virginia, and Kentucky.

Watch it HERE:

The transcript follows:

NARRATOR: This is John Kasich.

KASICH: "I didn't run Lehman Brothers, I worked in a two-man office in Columbus."

NARRATOR: But this is what Kasich used to say:

KASICH: "I do work on Wall Street."

"I work on Wall Street."

"I've said it three times this week. I do work on Wall Street."

NARRATOR: The issue is what Kasich did on Wall Street.

Kasich pressured Ohio pension officials to invest in Lehman Brothers.

Then Lehman Brothers collapsed and Ohio seniors lost $480 million.

So Kasich got rich, while Ohio seniors lost their pension money.

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