New York employees and taxpayers are unwittingly financing Russian companies and the oligarch pals of Vladimir Putin with at least $519 million invested in assets now frozen by the war-mongering dictator, The Post has learned.
City and state pension systems have pledged to sell off the holdings in protest of Russia’s assault on Ukraine, but Moscow has prohibited foreign investors from dumping the stocks.
“Putin is a thug and he’s holding our money hostage,” said Gregory Floyd, a Teamsters union leader and trustee of the New York City Employee Retirement System, NYCERS.
New York City’s five pension systems – covering teachers, cops, firefighters and other city employees – have invested a total $284.5 million in 33 publicly traded Russian stocks, according to records released to The Post by city Comptroller Brad Lander’s office.
On Feb. 25, the market value of the Russian assets was $185.9 million, nearly $100 million less than the purchase price, the latest available records show.
Total Russian and Ukraine sovereign and corporate debt was $813.3 million at year-end 2021, representing 97% of total exposure; the remainder comprised $28.8 million in stocks (see Table 2). While life companies accounted for the majority of the bond exposure at $683.9 million (or 84% of total Russia and Ukraine bonds), property/casualty (P/C) companies accounted for almost all the Russia and Ukraine stock exposure at $28 million. About 90% of U.S. insurers’ exposure to Russia and Ukraine bonds and stocks was held by large companies, or those with more than $10 billion assets under management.
Author(s): Jennifer Johnson, Michele Wong, Jean-Baptiste Carelus
Publication Date: 14 Apr 2022
Publication Site: NAIC Capital Markets Special Reports
It may not be fair to throw Finland in there, but if the excuse is hard-drinking and being northerly, Finland has that in excess, and they are beating all those other countries in life expectancy. So that’s not the difference.
Note that all the ex-Soviet states except Russia and Ukraine also had the post-USSR fall from 1989-1994… but started their mortality improvement in 1994, as opposed to a decade later.
Poland started doing well the moment communism went away. Isn’t that interesting?
But I want to note that Ukraine and Russia are lagging the comparable countries hugely. To be sure, Russia is huge, and includes Siberia, which is not the most congenial of locations. But Ukraine doesn’t have the excuse of Siberia.
Both places, in short, suck when it comes to mortality.
The war in Ukraine and subsequent international sanctions have triggered a bank run in Russia. But this is no ordinary run—it may become a run on the central bank itself, one that holds important lessons for introducing central bank digital currencies.
Reports show Russians lining up at ATMs to withdraw their cash. For now, the run is largely driven by fears of withdrawal limits and the anticipation that credit cards and electronic means of payments will cease to function. If that happens, cash at hand is the better alternative. For that scenario, central banks know what to do: provide solvent banks with plenty of liquidity against good collateral, as Walter Bagehot recommended.
But will that be all? As Western countries freeze the Russian central bank’s reserves and limit the ability of banks to transact internationally, the exchange rate of the ruble has collapsed, falling by more than 40 percent. Prices for ordinary goods may begin to rise, perhaps dramatically so. If that happens, then rubles would no longer be a good store of value. Russians may seek to convert them into foreign currency, but that’s hard to do with the current sanctions. Consequently, they may start to hoard goods instead, dumping their cash as they go along. The situation would no longer be a run on specific goods, but a run away from fiat money and toward goods—a run, in other words, on the central bank.
Author(s): Linda Schilling, Jesús Fernández-Villaverde, Harald Uhlig
As the Russian invasion of Ukraine continues, the AFSCME union in Illinois has asked the state board of investment to divest all holdings in assets tied to Russia.
A letter from the executive director of AFSCME Council 31 was sent to Illinois State Board of Investment Chairman Terrence Healy. Council 31 Executive Director Roberta Lynch referred to the invasion as a “genocidal slaughter of civilians.”
The state investment board governs investment policy for the State Employees Retirement System, as well as to other Illinois public pension funds that AFSCME members participate in.
These are awful trends. There’s nothing to caveat. Yes, Ukraine’s life expectancy is a little bit higher, but these numbers are awful, and yes, there was a cratering of male life expectancy after the collapse of the Soviet Union.
I will note that there was a general slide from the early 1960s until the early 1980s… a run-up for some reason (falsifying data?), and then absolute cratering. That’s just hideous.
Dropping about 5 years over a 5-year period is a horrible decrease.
There has been a recovery since 2004, but that life expectancy is still very low compared to other European countries, even other Eastern European countries, as we’ll see below.
The Ukrainian government has raised the age of retirement for women to 60 years old since April 1 this year.
The change was due to the law on raising the retirement age for women from 55 to 60 years old, which was passed by the Ukrainian Parliament in 2011.
Now in Ukraine men and women retire at the same age.
The Ukrainian authorities explained that the increase in the retirement age for women was to mitigate the negative consequences of the aging population, and reduce the deficit of the Pension Fund of Ukraine, which at the end of 2020 reached 13.2 billion hryvnia (474.5 million U.S. dollars).