Editorial: Bank Accused of Fraud Holds Ohio Pension Assets - Cleveland 19 News Cleveland, OH

Editorial: Bank Accused of Fraud Holds Ohio Pension Assets

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(WOIO) - Governor Ted Strickland is most interested these days in getting himself re-elected,  but when he has a few moments to spare, we recommend he investigate a recent decision by Ohio Treasurer Kevin Boyce to invest $32B dollars in state pension funds in a bank that currently stands accused of fraud.  

The bank, which does business as State Street Corporation of Boston, has been accused of defrauding California's two largest public pension funds. So why would Ohio's Treasurer take the risk of investing pension funds with the company? 

Well, one reason might be the cozy relationship between the bank's lobbyist in Ohio and Treasurer Boyce's top deputy. The lobbyist and Boyce's deputy once had a business relationship. And, not surprisingly, all the principles involved say their cozy relationship played no part in how State Street Corp. ended up with the pension contracts.  Even so, why would the state of Ohio park $32 billion dollars in pension assets with a firm accused of raiding pension funds in another state? Well, someone, maybe the governor, ought to find the answer to that question.  

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