Friday, 22 August 2014
Last updated 1 hour ago
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.
Aug 4 2014 | 7:42am ET
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The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note