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NY State Pension Fund To Sue BP For Drop In Shares
Here comes to dumbest news of the day - the New York State Comptroller, having forgotten that risk follows return courtesy of Bernanke and Obama's Global Put, has announced that the New York State Pension Fund will sue BP for the loss in BP shares. This is almost certain to lead to a massive surge in the troubled company's shares. According to recent 13F reports, the New York State Common Fund held 11 million shares of BP, at a end of Q1 value of $192 million. It is fair to say this value has been cut in half by now. If the NY fund is willing to sue a firm after it has lost about $100 million on a soured investment, things at the pension fund must be beyond bad.
We are paitently waiting for utterly trashed CalPERS to join the fray any minute. As the LA Times reported yesterday, the California pension fund lost $285 million on BP, while total US pension fund losses have totalled $1.4 billion.
After dropping a quarter of the value of its $200-billion portfolio during the recession of 2008 and 2009, the country's largest public pension fund is posting more big losses because of the massive 2-month-old BP oil spill in the Gulf of Mexico.
Since April 20, the 58 million BP shares owned by the California Public Employees' Retirement System lost $285 million, dropping from $586 million on April 20 to $301 million, according to an analysis by Bloomberg News.
BP-related losses for all U.S. pension funds totaled $1.4 billion as the value of BP stock tumbled 47%.
CalPERS, which invests broadly in nearly all publicly trades stocks in the United States and in foreign markets, "intends to engage BP on corporate governance issues," said Pat Macht, the pension fund's director of external affairs.
"BP is on our radar screen," she said. "With our long-term investment horizon and our well-diversified portfolio, we are managing this going forward."
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What about the portfolio manager? Is he/she suing for his/her bonus?
I'm suing the NY Pension for suing BP and hurting MY BP shares.
ya think that maybe the problem with the ny pension is all those teachers and cops retiring with ridiculous pensions, like this dewd who is getting $300,000 per year.
http://www.myfoxny.com/dpp/news/local_news/new_york_state/new-york-pensi...
If you can' take out $10 million in retirment benefits after putting in 20 ground, then what good is giving 10 cents on the dollar in campaign contributions.
Who'd a thunk?
My wallet lost half it's value while visiting Foxwoods.
Can i sue if my scratch off lottery ticket doesn't win?
You couldn't make this up!
I wonder if I could sue to recover money I've lost on losing trades? Because if I could get rid of the downside risk by doing that, it would make this whole investing/trading thing way less stressful.
NYS is probably suing because BP didn't disclose that they were planning on having a failed well BOP.
What an inane bunch of azzholes.........
LOL!
CD, is this the insanity manifesting itself again? Most people believe that assets are without risk and must always rise.
Considering that the TBTF banks "sued" by way of blackmail to cover their bad "investments" what's so strange to see other entities looking around and trying to extort money from the Ponzi.
I want to sue for emotional harm to my fragile psyche. I'm going crazy over here. What about a handout to soothe my pain and fill my wallet?
next they pension fund will sue itself for owning the stock
LOL! I wouldn't doubt it.
Don't forget-these are the guys who were going to lend the State of New York $6 billion OUT of the pension fund so the State could make the annual $6 billion payment INTO the pension fund.
....yeah, I am patiently waiting for CalPers to piggyback onto that brilliant idea. Only a matter of time before many States cite the NY precedent as a great problem-solving scheme.
I read this shadow math idea a few weeks back. No doubt some creative accountant found a way to add pending law suits to the positive side of the balance sheet in order to keep the music playing. I am amazed they can just keep stacking the cards as high as they are.
I had a small posistion in BP and upon first news of the spill, dumped it all. There was plenty of time. Just how did this fund think this would turn out? Newsflash NY state: this "hopey changey" stuff don't work.
This has provided me with a great laugh. If this passes, I am filing suits against every company I had a losing trade on. I like this type of risk managment, if I lose I just sue and get my money back but if I win then I don't sue.
I just got a $14 check as my share of the Worldcom settlement.
While the attorneys split hundreds of $ millions, probably.
+10.
Don't have anything against contigency fees in that it has allowed folks who have sufferred real injury to "afford" representation even if they don't have two nickels to rub together.
However, in larger, class-action-type settlements where awards are in the millions (or higher), would love to see attorneys fees capped at 20% (or less) of the average or mean payment received by class members per class member.
The world is just becoming more and more bizarre. I feel like I'm watcing a bunch of kids on a playground.
You are............
Smug when they win, whiny little bitchez when they lose. The usa taxpayer will pay for this too.
No doubt. WIth all the interrelated budgets, a bail-out of a state government "to keep police on the beat" will be traceable to cash flowing to pensions which lost mony on BP.
Global Idiot Bubble ...
Maybe I can sue because the price of oysters and shrimp are going up
great idea. I'm a shareholder. I own the company. I sue the company, so I am effectively suing myself. Only an ignorant socialist progressive would think of such a brilliant strategy as suing one's self to recover from a bad decision.
Use your brain man, they're not suing themselves.
S/he who gets there firstest with the moistest lawyers wins!
Similar to my thoughts when I saw this. Perhaps the strategy/thinking is to try to turn an unsecured creditor position (shareholder) into something that will be further ahead in the collateral line when things go further south. If they win this (and collect), they will be taking money out of the pockets of other shareholders. So expect a slew of lawsuits now from every significant shareholder, if for no other reason than to prevent being bumped further back in line.
Nice to see that medicinal marijuana is being dispensed at the pension fund central. Isn't it great to have the ultimate sense of entitlement. God, what was that Smiths song? "The world owes me a living. Ask me why and I'll spit in your eye"
So, if the fund manages to prove that BP knowingly caused this incident [and ergo caused the stock value to go down], this makes the criminal case against BP. What a deal!
Not exactly, but they are borrowing from themselves to pay themselves. You can't make this shit up!
"State Plan Makes Fund Both Borrower and Lender"
ALBANY — Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.
http://www.nytimes.com/2010/06/12/nyregion/12pension.html
This is America -- everyone is a victim here. Any obstruction to entitlement will be removed, whether by Fed intervention, congressional bribery, or judicial activism.
wow, in honor of their frivolous law suit, I shall shit in a box and send it to them to eat
Is it illegal to ship your shit to the gov't? If it is not we should have a notional feces day.
That would be illegal.
What is legal is to go on a raging binge at the pub and then walk en masse down to your nearest pension office, walk in to ask for a meeting, and subsequently vomit all over as many miscreants as possible.
Outstanding Comment :-D
Thats what happens when you base your economy in a casino.
Very smart America.
Question from a newbie....when the Fund Managers saw what was happening two months ago, why didn't they just sell the stock?
captial gains tax on proceeds vs. no tax on lawsuit ruling. Its a tax shelter!
pensions ain't taxed on sales. Taxes paid on distributinos by recipients.
I'm living in a freaking cuckoo clock.
300 grand? NY is lucky. The San Fransisco police chief made 516,118.
http://www.nbcbayarea.com/news/politics/One-in-Four-Decline-Newsoms-Offer-to-Take-Pay-Cut.html
Good. Just what we need. More cases throwing up bricks from deep building the temple to obtain "loser pays" tort reform.
Heaven forbid some BP-hating judge actually takes this seriously because if BP is liable for losses on its stock price then it is thoroughly screwed.
There used to be a guy who owned this great bar on the beach here in NY called Bob Masterson who was hounded out of the state by the ridiculous policies. He ran a ad campaign whose tag line was:
"Get out of New York State before its too late!"
The Great recession update to this should be:
"Get out of New York State its already too late!"
this would set some kind of precedent. just imagine if you could sue every company on whose stock you lost money.
The new new.......
LOL
and these guys are friggin paid to be in this 'investment' business... wasn't there something somewhere on one of those zillions of prospecti that indicated something about risk?
why do we dignify these idiots in our courts (and media). i'd charge them with contempt, then bill them 10x for frivolous damages.
and the more they get away with this noise, the more noise we'll see.
not a good trend.
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