Free Float Trading/ Portfolio Development/ Index Stategies Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Free Float Trading/ Portfolio Development/ Index Stategies

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: dvdw©	9/19/2008 3:54:38 PM
	Read Replies (1) of 3821

More evidence of Systemic largesse and breach of fiduciary duty.(thanks CB) The Teacher Retirement System of Texas has temporarily discontinued a portion of its securities lending program as a result of the recent downturn in the financial markets. The practice involves the lending of securities for a fee by one party to another. The loans are secured by collateral, such as cash, government securities or a letter of credit. The securities are often borrowed to cover a short position or to help settle a trade. The Teacher Retirement System put part of its securities lending program on hold in order to help the agency effectively manage fund assets during the turbulent financial environment. The investment firms affected by this action include Goldman Sachs & Co. (NYSE: GS), Morgan Stanley (NYSE: MS), Wachovia Corp. (NYSE: WB), State Street Corp. (NYSE: STT) and Washington Mutual Inc. (NYSE: WM). “During periods when financial markets are operating normally, securities lending both contributes to the efficient functioning of those markets and also to the growth of the TRS pension fund,” TRS Executive Director Ronnie Jung says. “However, during this time of unusual market stress and dislocation, we — along with other major pension funds — have determined that it would be prudent to discontinue a portion of our securities lending program, particularly as it relates to certain key financial firms that appear to have been materially, and perhaps inappropriately, impacted,” he says. The Teacher Retirement System will reassess the situation as market conditions change. Jung says the pension fund is closely monitoring all financial and investment activities and is taking whatever steps necessary to serve members’ interests. The Teacher Retirement System is authorized by the Texas Legislature to manage a trust fund totaling more than $100 billion on behalf of Texas educators. More than 1.2 million public education and higher education employees and retirees participate in the system.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next