CASAGRANDE AND O’SCANLON SUPPORT AG’s DECISION TO INVESTIGATE LEHMAN

CASAGRANDE AND O’SCANLON SUPPORT AG’s DECISION TO INVESTIGATE LEHMAN

Many Questions Need to be Answered and Individuals Held Accountable With the disclosure by Attorney General Anne Milgram yesterday that state securities investigators are looking into Lehman Brothers and another bank that does business with New Jersey, Assemblywoman Caroline Casagrande and Assemblyman Declan O’Scanlon, both representing the 12th Legislative District, commended the announcement and indicated that taxpayers are entitled to know who was involved from both the government and investment side of the issue that resulted in the state pension system losing approximately $100 million.

“I am encouraged to learn of the state’s inquiry into the Lehman Brothers debacle,” stated Casagrande (R – Monmouth, Mercer).  “As my colleagues Assemblywoman McHose, and Assemblymen Chiusano and Merkt have previously stated, a thorough examination of the details regarding the decision to invest such a large amount with a troubled company needs to be conducted.  This is the first step in a process that demands accountability regarding what type of connection existed, if any, between officials at Lehman and those in the state investing people’s retirement funds.  I anticipate full disclosure of all relevant information pertaining to the investigation so the public will know who is responsible.”

In the wake of the Lehman Brothers financial catastrophe, Republican legislators called for an investigation into the background on how the state decided in June to invest $180 million of state pension funds with an organization that was in financial peril.  On September 18, the New Jersey State Investment Council convened to provide background information on the state’s investment into Lehman which had declared bankruptcy the prior week.  Much of the information disclosed was not satisfactory to elected officials as it left many questions unanswered.  A chief concern expressed at the time was how could the state invest such an amount with a company that was clearly faltering, and who approved the risky investment.

“Though news of the state investigating the circumstances surrounding the relationship between government officials and Lehman Brothers is welcome, I will be particularly interested in the findings once the inquiry is completed,” stated O’Scanlon (R – Monmouth, Mercer).  “It is not enough for the state to file a lawsuit against the bank involved in the investment decision.  That is only one piece of the puzzle. The public has a right to know which individuals are responsible and what steps they took in making the decision to place a portion of the state pension fund with a company that was teetering on financial disaster.”                                         #######