My, my...this is interesting pension news!

From John Curry, June 17, 2010

I see that the New York State Common Retirement Fund, with a whole lot more assets than STRS has (132.6 billion), owns 17.5 million BP shares....STRS owns 10.9 million shares...wonder if we are also considering a lawsuit?

John

http://online.wsj.com/article/SB10001424052748704289504575313221692849854.html
?mod=WSJ_WSJ_US_News_5

New York Pension Fund Considering Suit Against BP

Wall Street Journal, June 17, 2010
By Jilian Mincer

New York state's pension fund is considering suing BP PLC for its management of the well in the Gulf of Mexico that's been spewing oil for the past two months, a spokesman said.

The New York State Common Retirement Fund, with $132.6 billion in assets, owns 17.5 million BP shares through index funds.

"We've been looking at all our options that we have available, including potential litigation," said Robert Whalen, a spokesman for the fund. "We want to make sure if there was negligence or recklessness that we are made whole appropriately," he added.

BP spokesman Robert Wine said he was unaware of any potential litigation and had no immediate comment.

A lawsuit from one of the largest pension funds in the country would add to the pressures BP is facing. It's already spent nearly $2 billion in the spill response and faces billions more in costs related to plugging the leak, clean-up, fines and potential litigation. It's under criminal investigation by the U.S. government and at least three lawsuits have been filed on behalf of the company's shareholders in recent weeks in state courts, according to lawyers.

BP's shares on both sides of the Atlantic have fallen nearly 50% since a deadly explosion at its Macondo oil well in the Gulf of Mexico on April 20. The stock is widely held by pension funds.

Mr. Whalen estimates the fund has lost about $30 million since the blast as a result of the decline in BP shares. As of Thursday's closing price, of $31.71, the New York fund's holdings were worth $554.9 million.

He said the fund is also reviewing industry practices at other companies in the energy sector in which it has holdings. "We want to not just be profitable this year or next, but to be sustainably profitable."

Under intense political pressure in the U.S., BP took steps to address concerns about its long-term financial health on Wednesday, saying it would suspend dividend payments this year and pay $20 billion over the next three and a half years into a fund to cover claims from the spill. The oil well is still spewing oil into the Gulf of Mexico and has sparked an environmental catastrophe in the region.

"We want our companies to fully identify and mitigate risk and to let shareholders know what they're going to do to protect our investments," said Mr. Whalen.

In contrast, the New Jersey pension fund no longer owns BP stock. It made its last purchase in September 2009 and began selling its 52 million shares on Jan. 15, 2010. It had sold about half its shares by April 21, with the total sale yielding a profit of $5.5 million.

The decision to sell "was based on a really sound portfolio management," said Andy Pratt, director of communications for the New Jersey Department of Treasury. "We made gains, and we wanted to lock them in and not be greedy."