New Jersey Could Move to Ban Iran Investments
New Jersey Could Move to Ban Iran Investments
Source: NJ101.5
New Jersey on Monday was expected to move toward becoming one of the few states to prohibit state pension money from being invested in companies doing business in Iran.
The move is designed in protest of the country's links to terrorism and its nuclear ambitions.
Most American companies are barred from doing business in Iran, but the state Senate was slated to vote on legislation restricting the state from buying stock in international companies that do business with Iran. The Assembly voted 78-1 in June to approve the measure.
If approved by the Senate it goes to Democratic Gov. Jon S. Corzine for his signature.
Corzine's administration has said it would prefer maximum freedom to make investment choices, but has said it was reviewing the bill.
Florida earlier this year became the first state to approve such a law, according to the Center for Security Policy, a Washington, D.C-based nonprofit that pushes states to divest public money from counties linked to terrorism.
Florida's law also banned investments in Sudan, and the board governing Florida's public employee retirement fund authorized it to divest nearly $1.3 billion invested with 21 companies doing business in the two nations.
California Gov. Arnold Schwarzenegger in October signed legislation to end state investment in companies that do business with Iran.
"Divesting is a key component of preventing Iran from their efforts to oppress their citizens, terrorize their neighbors and spread hatred throughout the world," said New Jersey Sen. Robert Singer, R-Ocean. "New Jersey shouldn't be complicit in perpetuating human rights violations and the spreading of terrorism."
New Jersey Assemblyman Neil Cohen cited anti-Israeli comments made by Iranian leaders.
"Divesting our finances from entities associated with Iran will send a clear message in the universal language of money that New Jersey will have no part in Iran's pursuit of actions that would lead to Holocaust-like genocide and the complete destruction of a sovereign nation," said Cohen, D-Union.
The New Jersey proposal mirrors a bill passed last year that prohibited investing state pension funds in companies doing business in Sudan to protest what the United States has deemed a genocide in the African nation.
New Jersey also passed a similar law in the 1980s barring investments in South Africa.
The state's pension fund is worth about $80 billion, though it was unclear how much is invested in companies doing business in Iran. The legislation requires the state to hire an independent research firm specializing in global securities to identify such investments.
New Jersey's pension fund is the nation's ninth largest. It recently divested $2.16 billion from 17 companies doing business in Sudan.
Many states have been considering pulling their investments from companies doing business with Iran, North Korea, Sudan and Syria.
In Texas, Gov. Rick Perry asked the state's pension funds to divest, though they didn't meet his deadline do so and a bill involving divestment from Iran died in the Legislature.
Michigan's House approved divestiture legislation and the Senate announced separate measures, none of which has advanced to the governor's desk.
Similar legislation is pending in Congress.
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For Consideration:
Rudy Giuliani’s firm advises a client that is blacklisted by the US:
Firm Advises Grupo Santander in Acquisition of Leading U.S. Auto Finance Company
September 25, 2006
NEW YORK (September 25, 2006) –Bracewell & Giuliani advised Banco Santander Central Hispano, S.A. (SAN.MC, STD.N) in its agreement to acquire 90 percent of the U.S. auto financing company, Drive Financial Services, for approximately US $651 million.
The transaction is scheduled to be completed in 2006. Santander will acquire a 64.5 percent interest from HBOS plc and will acquire the balance from Drive Financial’s management. Thomas G. Dundon, Drive Financial’s president and chief operation officer, will retain a 10 percent interest.
Drive Financial, based in Dallas, is one of the leading auto financing companies in the subprime customer sector in the United States with operations in 35 states.
Santander Consumer Finance, one of Grupo Santander’s core businesses, is a European leader in consumer finance.
Bracewell & Giuliani Attorney Team
Partners: Rudy Giuliani (Management), Will Anderson, Mike Telle, Cle Dade (Corporate/M&A), Greg Bopp (Tax), Chris Olive (Financing), Sandy Brown (Regulatory), Tony Visage (Litigation), Jeff Whittle (Intellectual Property), Bruce Jocz (Employee Benefits), Eden Sholeen (Labor), Brock Bailey (Real Estate), Tim Wilkins (Environmental), Scott Segal (Government)
Associates: Justin Long, Ian Brown, Adam Adler, Shannon Weinberg, Linda Morgan (Corporate/M&A), Rhett Jackson (Tax), Jerry Sanchez (Regulatory), Mark Chretien (Intellectual Property), Allison Perry, Michael Tomberg (Employee Benefits), Mary Ann Hisel (Labor), Mason Griffin (Real Estate)
Foreign legal consultant: Jose Luis Vittor (Corporate/M&A)
Categories: New Jersey, New York, Iran
Tags: NEWYORKCITYCOMMUNITY.US
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