Welcome!

News Feed Item

State Treasury and BNY Mellon Resolve Sigma Claim

Treasury, SERS, PSERS Will Recoup Portion of Investments Lost During Recession

HARRISBURG, PA--(Marketwired - February 28, 2014) - The state Treasury and the two largest state public pension systems have reached an agreement with BNY Mellon to recover a portion of the funds lost in connection with an investment in Sigma Finance Inc. during the severe national economic downturn of 2007-08.

Under the settlement, BNY Mellon will pay Treasury, the State Employees' Retirement System (SERS) and the Public School Employees' Retirement System (PSERS) a combined $19 million. Treasury also previously recouped $22 million in fees from BNY Mellon during the years since the Sigma loss arose in 2008. The state agencies also recovered $6.4 million from Sigma.

In addition, Treasury has entered into a new custodial and an amended securities lending agreement with BNY Mellon.

"Obviously, many public and private funds suffered significant and permanent losses when the Great Recession hit," said state Treasurer Rob McCord. "We are pleased to reclaim a substantial share of the money from this investment for Pennsylvania tax payers."

George Gilmer, Head of Asset Servicing - Americas for BNY Mellon, said, "We are pleased to reach an agreement with Treasury that resolves our issues and allows us to continue our long-standing relationship with the Commonwealth of Pennsylvania."

Losses to the three state agencies totaled $133.4 million following Sigma's default in 2008. McCord sought a recovery from BNY Mellon beginning shortly after he took office in January 2009. The negotiations were conducted by Treasury's legal staff on behalf of the three state parties, without expense of outside counsel.

"I'm proud of the professionals at PSERS and SERS and our legal counsel at Treasury who worked long and hard to ensure the best possible deal for the public and for our retirees," McCord said.

After Treasury reached agreement with BNY Mellon, the Boards of SERS and PSERS approved the settlement agreement. The agreement was then forwarded for required legal review to the Office of Attorney General, which approved it.

The losses involved investment of cash collateral resulting from securities lending activity. BNY Mellon serves as the custodial bank and securities lending agent for commonwealth funds, including holding all of the commonwealth's securities. Under a securities lending agreement, the bank can loan those securities to third-party borrowers to facilitate certain strategies. The borrowers provide collateral in excess of the value of the loaned securities, often in form of cash. BNY Mellon then invests that cash on the commonwealth's behalf in accordance with guidelines contained in the securities lending agreement. The bank's purchase of Sigma securities was made under that agreement.

The settlement averts a costly and unpredictable lawsuit and allows the commonwealth to continue its custodial relationship with BNY Mellon.

"While investment losses are always unfortunate, I'm pleased that we were able to cooperate with BNY Mellon to mitigate those losses for Pennsylvania, and continue to partner with BNY Mellon as our custodial financial institution," McCord said.

For more information, visit www.patreasury.gov.

Media contacts:
Pennsylvania Treasury: Gary Tuma, 717-787-2465 or [email protected]
BNY Mellon: Kevin Heine, 212-635-1590 or [email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
"We're developing a software that is based on the cloud environment and we are providing those services to corporations and the general public," explained Seungmin Kim, CEO/CTO of SM Systems Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Codigm is based on the cloud and we are here to explore marketing opportunities in America. Our mission is to make an ecosystem of the SW environment that anyone can understand, learn, teach, and develop the SW on the cloud," explained Sung Tae Ryu, CEO of Codigm, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
"CA has been doing a lot of things in the area of DevOps. Now we have a complete set of tool sets in order to enable customers to go all the way from planning to development to testing down to release into the operations," explained Aruna Ravichandran, Vice President of Global Marketing and Strategy at CA Technologies, in this SYS-CON.tv interview at DevOps Summit at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.