Thread regarding TIAA (TIAA-CREF) layoffs

@k5 No. Furthermore, I won’t confirm/deny anymore speculation other than what I’ve already said.

@jn Project Black with Ariel Investments?

@k0 A lot gets lost in the net income/loss number. Yes, it's concerning to have quarter after quarter of losses but the devil is in the details. In FY '24, we had to use surplus capital to pay down surplus notes outstanding. In isolation this isn't a big deal BUT looking at the entire firm, the ratings agencies would have dinged us given some of the other issues (high risk assets, RBC ratio, expenses, etc., etc.), which would have potentially hurt our rating. Basically, this is nothing more than a shell game and a house of cards. Sooner or later, it'll all come crashing down...

@jn Thx. This was the post of the year as it was very informative. I wish there could be a hostile takeover for our Board. How they let this stuff fly is beyond me.

@jf without getting too specific let’s just say that the write down was between $0 and $900 million (not $0 and not $900) and that it dealt with an initiative that was promised to help people in lower socioeconomic classes.

Behind that, you’ll have to extrapolate/interpolate on your own.

@ef can you share more on the bad investment that led to the massive write down?

Getting ready for the chase by out.

@ax A notch downgrade probably wouldn't do much other than the comms team having to redo marketing materials. Ironically, it would probably help us as it would put us more in line with our peers who take riskier investments which would allow TIAA to do the same.

@a8 this isn't necessarily true. The funding of TIAA comes from the General Account which is 85% invested in fixed income type of instruments, which as the name suggests, pays income. TIAA has no real public equity exposure, other than what Nuveen manages and earns fees on through their AUM/AUA. Equity markets have essentially rebounded from their lows post "Liberation Day" i.e. if you were in a coma from April until now, you wouldn't know anything happened.

A few observations.

1. If you look at the income statement, TIAA took in $5.3bn in premiums and made $3.5bn in investment income from the General Account. On the expense side, we paid out $2.3bn in annuity benefits BUT also had $4.2bn in surrender of benefits and withdrawals of contracts. Essentially, the amount of money people are pulling out of TIAA is more than the General Account made…at least for Q1. THAT’S CONCERNING and I haven’t heard ANYONE talk about it.

2. Capital Surplus is down bc TIAA had to take a massive write down on a bad investment that was spear headed by none other than the supreme leader herself.

3. And while the financials aren’t prominently displayed on the TIAA website, they are there. Go to the “corporate governance and leadership” link at the bottom of the webpage.

What kind of company posts their results on a hidden part of their website that cannot be accessed via a normal link? I have to know some secret search term to even find it? That is patently ridiculous.

The source of this 411 is the TIAA website. They hide it pretty well, but Google "TIAA Open Book", then scroll down to Financial Reports and click on "TIAA accounts", then scroll to the bottom for most recent report. Seriously, for a Company that claims to be an "Open Book" and fully transparent, they must keep "the open book" stored in a musty old basement four levels down with nothing but a frayed rope ladder to get to it!! They are total frauds. If the company was publicly traded and therefore, publicly scrutinized, there would be no company anymore.

Can someone share the source of this 411?

This has been a question of mine since seemingly each quarter shows us negative in the multi millions - where is the money coming from? With a shrinking client base & increasingly horrible financials how is TIAA still paying it’s employees and the ECs lavish lifestyles & paid media spots? Seems like TIAA is hemorrhaging money which could force an acquisition. Can anyone help me here? Admittedly numbers aren’t my strong suit.

I wonder if a ratings downgrade is imminent.

Second quarter will not be any better given the recent stock market negative performance.

It really is criminal that T and the EC racking up millions while the company suffers massive losses.