“Shares of MetLife Plunge on Big Charge,” The Wall Street Journal, January 31, 2018 B16. MetLife needed to increase its reserves after “losing track of possibly tens of thousands of retirees owned monthly pension payments.” Loses 9% of share value (and this was before the big drop this week!). This was after they reduced their reserves earlier, resulting in increased revenues. The day earlier, “Pension Snafu Hits MetLife Results,” The Wall Street Journal, January 30, 2018 B1. A “records mistake.” Huh?
People have been and will be fired. Will any senior executives take the hit? What exactly is the company’s business? Where was the Board on this? Do they refund any of their fees? At least the company admitted a material weakness in its financial systems. Is the CFO nervous about what he/she signed? Did the boost affect anyone’s bonus? Did this affect the market?
This was not a records mistake. It was a conscious decision. Who decided to reduce the reserves and just forget about the pensioners who weren’t easy to find?