http://jessescrossroadscafe.blogspot.com/2014/03/martens-ghouls-of-wall-street-jp-morgan.html
IF the Banks are self-insured, and IF they are offering death related
benefits to the employees for which this employee insurance is strictly a
hedge, then this might make some moral and legal sense. But it does
not appear to be the case.
And certainly for years companies have taken out life insurance on key
employees, whose loss would be a blow to the company, as the
article acknowledges. But they go on to point out that this program is
not related to key employees, but is widespread, and continues on even
after they leave their employment with that firm.
It seems that there is some perverse loophole in the tax laws and
insurance calculations that makes it profitable for a corporation to
'bet' on the early deaths of its employees, for its own profit, as this
article implies, and not as any hedge against the loss of their talent.
Last one out shut the lights off...
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