The NY Times questions City Comptroller William Thompson's management of the NYC pension fund, reporting, "A review of how the $80 billion system has performed since he took office shows it has consistently lagged behind many of its public pension peers even as the city tripled the number of money managers it uses and the fees that it pays those firms." What's more, Thompson, who is running for mayor, has "[collected] more than $500,000 in campaign contributions from its growing roster of money managers since he first entered the 2001 race for comptroller. In some cases, the executives gave to Mr. Thompson just months before the pension funds hired them to manage tens of millions of dollars, according to interviews and public records." Thompson says that there have been tough years and that the NYC pension fund does match the Russell 3000 ("a broad stock market index")—the Times used "a widely used financial yardstick compiled by Wilshire Associates, an investment advisory firm" to measure the city's fund performance. Update: In March, the Post ran a story about Thompson's donations from investment firms that manage pension funds; the Citizens Union's Dick Dadey said, "I question why these donors feel a need to contribute. They are out-of-state donors. It certainly isn't out of civic interest because they don't vote here." more ›

The Attorney General's office, already investigating the state pension fund, is now looking at the NYC pension fund. The NY Times reports, "Investigators have long been examining why a tiny firm operated by Daniel Hevesi, a former state senator and the son of a former state comptroller, Alan G. Hevesi, was paid more than $1 million in fees for his role as an intermediary in deals with pension funds in New York City and for deals in New Mexico." (Two of Hevesi's cronies have already been indicted in the state pension fund corruption probe.) NYC Comptroller William Thompson already announced his office was investigating the use of placement agents (aka the middlemen who collect fees to match funds with investment firms) but the AG's investigation would reportedly be broader. On the state side, the Daily News says that Assembly Speaker Sheldon Silver arranged meetings between investors—such as former Rangers goalie Mike Richter— and the state comptroller's office. While none of those investors were selected, watchdog group Common Cause says, "It's very inappropriate because it looks as if the speaker is using his office as the most powerful elected official in the Assembly to try and influence the controller." more ›

The trouble is just starting for private equity firm Quadrangle. Last week, it was revealed the firm's founder—and current White House auto bailout chief—Steve Rattner allegedly paid $1 million to a middleman to be included in the state's pension fund. Now it appears the investigation is heating out up over his attempts to have Quadrangle included in other pension funds—like those of New Mexico, LA and NYC. Apparently Quadrangle paid middleman/placement agent fees to the firm of Hank Morris, already indicted in state pension fund scandal, to drum up business—the NY Times reports that after a meeting with the NYC Comptroller's office, "Mr. Rattner left the meeting irritated that his own considerable connections did not seem to be enough. He soon hired Mr. Morris." City Comptroller Thompson's office is now investigating over whether Quadrangle lied about not naming Morris as a placement agent. (Also, Morris was also former State Comptroller Alan Hevesi's political consultant/top fundraiser!) To that end, the State Comptroller Thomas DiNapoli has banned placement agents from the pension fund, but a NY Times editorial suggests that the Legislature needs to create an independent body that watches the investments the State Comptroller makes. more ›