US - The state of Oregon is suing the former Bear Stearns for allegedly misleading investors, including the state's pension fund, in mortgage-backed securities.
Oregon Treasurer Ted Wheeler and attorney general John Kroger said the Oregon Public Employee Retirement Fund lost $17m through investments in mortgage-backed securities sold by the firm in 2006 and 2007. They said the securities were "vastly exaggerated in value and quality".
At the time, Bear sold $17.5bn in mortgage-backed certificates touted as high quality, investment-grade securities. But some $17bn worth was eventually downgraded to below investment grade, and some eventually downgraded to junk bond status.
"We believe that these junk investments were intentionally mislabeled and all Oregonians are still reeling from the economic fallout," said Wheeler. "If you hurt Oregonians financially, we are coming after you."
Oregon joins public employees' retirement funds in Iowa and Mississippi, the Boilermaker Blacksmith National Pension Trust and the City of Fort Lauderdale Police and Fire Retirement System among others, in an existing class action.
Bear Stears was taken over by J.P. Morgan in 2008. Officials at J.P. Morgan could not immediately be reached for comment.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.