Re:Vanguard's Low Blow
by pc86 on Friday February 12, 2016 @09:44AM
(#11087481)
> it has to offer it's services at a competitive market rate.
It's asset-weighted fees are approximately 1/6 of its competition. That seems pretty competitive to me.
Less bombastically, who decides what a competitive fee is? If they charged 1/2 market rate would this suit have ever been filed?
If they were operating at a loss I think it'd be pretty easy to claim they were avoiding taxes and should be operating at break even. But they are operating at break even, so I think it's hard to make the argument that they should be charging more "just because other firms do" and not come off as just some opportunist trying to cash in on a whistle-blower payout.
It's asset-weighted fees are approximately 1/6 of its competition. That seems pretty competitive to me.
Less bombastically, who decides what a competitive fee is? If they charged 1/2 market rate would this suit have ever been filed?
If they were operating at a loss I think it'd be pretty easy to claim they were avoiding taxes and should be operating at break even. But they are operating at break even, so I think it's hard to make the argument that they should be charging more "just because other firms do" and not come off as just some opportunist trying to cash in on a whistle-blower payout.