Garden State Gov. Says No Look Needed At State Hedge Investment

Nov 4 2008 | 1:31am ET

New Jersey Gov. Jon Corzine yesterday rejected calls for an investigation into a state pension fund’s hedge fund investments, saying “anybody that knows anything” would know that those investments are protects by the government’s Wall Street bailout.

Corzine, a former co-chairman of Goldman Sachs, was asked if more oversight of the $71 billion New Jersey Division of Investment was needed after it invested $94 million in emergency capital in a BlackRock hedge fund, to shore up its existing $470 million investment. His reply was terse and succinct.

“On this circumstance, absolutely not,” he said.

“In fact, anybody that knows anything about a capital structure of a corporation would know that the investment division was choosing to invest in securities that are protected by the capital that was infused by the federal government into the banks.”

A pair of state senators had called for a bipartisan committee to look into the Investment Division’s decision. Barbara Buono, a Democrat who heads the state Senate’s Budget and Appropriations Committee, had demanded more accountability at the investment.

“The $544 million investment may turn out to be a good one—or another $115 million loser like the state money put into the failed bailout of now-bankrupt Lehman Brothers,” Pennacchio said in a statement.

“Those kinds of decisions should be left to professionals like the people we have who run our investment portfolio,” Corzine shot back.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note