LETTERS TO THE EDITOR

Liar, liar

I am writing to correct a major inaccuracy in your March 2 story concerning Firstar Corp. in Milwaukee (“Bottom line looks a bit cheesy at Wisconsin’s biggest bank”).

Firstar is one of the leading bank holding companies in America and a company on whose board of directors I have been proud to serve for some 17 years. The story, originally published in your sister publication Crain’s Chicago Business, incorrectly and unfairly characterizes my views as a director and as one of Firstar’s largest stockholders.

In both the original story and your republication of it, it is reported that I am “said to think” that Firstar should explore a sale of the company. Not only is that a lie, it is a lie now twice told by the Crain Communications Inc. organization.

Interestingly, after Crain’s Chicago Business published its inaccurate and unfair story, I issued a public statement to the news media, and I said:

“My position is clear: I strongly favor the continued independence of Firstar. As a shareholder and as a director, I am compelled to correct repeated and incorrect news media reports on this matter, frankly because to remain silent in the face of these inaccuracies is a disservice to Firstar and its many employees, customers and shareholders.”

Your publication picked up an inaccurate story and published it verbatim. I can only assume that you had no idea that the story you were using not only was inaccurate but it also had remained uncorrected in the face of my own statement.

Sadly, the damage done by irresponsible reporting and inadequate editing is great. Firstar is a tremendous company with a great history and an even greater future. Members of the news media who fail to check their facts bear a direct responsibility for such damage.

My family and I have owned the stock of the company for many years, and we have done very well with our investment in Firstar. The idea that I would be interested in selling is preposterous. I believe in this company, in i
ts management and in its future. It has done very well for its shareholders over the years, and it will continue to do so.

WILLIAM W. WIRTZ

Chicago

Try bye-bye bonds and buy, buy stocks

I want to respond to your recent editorial “Time to take stock — and buy bonds” (InvestmentNews, Feb. 23), in which you raised concerns that 70% in stocks was too rich an allocation for the average worker.

I have spent the last four years conducting research on this and related issues. Contrary to your concerns, my finding is that a worker aged 50 should have 65% to 90% of his or her 401(k) in stocks, or an average of 72% in stocks. A worker aged 60 should have 55% to 80% in stocks, or an average of 62% in stocks. The higher the percentage, the greater the opportunity for wealth building. So the 70% figure is not outlandish, but quite sensible.

Higher holdings in bonds make more sense during retirement, when the worker is withdrawing funds. That is why defined-benefit plans must hold a significant portion of their assets in bonds; they have a responsibility for distributing wealth as well as accumulating it.

By the way, InvestmentNews is one heck of a fine read.

William P. Bengen

President

Bengen Financial Services Inc.

El Cajon, Calif.

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