|MARY WILLIAMS WALSH|
Public pensions in
Now, state financial regulators have subpoenaed about 20 companies that help
''The recent financial difficulties in
Public workers and retirees are not the only ones with a stake in
The latest subpoenas were sent last week to consultants that range from large firms like
Public pension funds typically have one or more general consultants who advise the trustees and senior staff members on developing an asset allocation policy, which assigns different shares of the total investment portfolio to stocks, bonds, real estate and other types of assets. In recent years, concerns have been raised that general consultants have been encouraging trustees to shift more pension money into aggressive investments in hopes of earning higher annual returns than can be achieved with stocks and bonds. That exposes taxpayers to greater risks because assets that promise the biggest potential rewards are also generally the most volatile.
In banking and insurance, which
''Where we find areas that need urgent and prompt corrective action, we may propose new regulations to increase accountability and transparency at those funds,'' he wrote.
In addition to their general consultants,
Pension trustee duties are especially sensitive in
That scandal generated calls to replace
Senior officials of the
The offices of the
This is a more complete version of the story than the one that appeared in print.
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|Source:||New York Times Digital|