PFRDA

What happends when city pension fund boards invest millions of dollars in a risky business?

Several city pension fund boards agreed in 2006 to invest $68 million in DV Urban Realty. Who and how does this affect? Is this legal or illegal? Is it ethical?

Public Comments

1. Is it legal? Yes. Is it ethical? Only if everybody that is affected by the risks understands what they are getting themselves into. Perhaps the city pension fund board came to the conclusion that the only way that they could make this work was to invest in risky investments. It probably would not have worked any other way. So basically they rolled the dice and are hoping that they win. However there is a much bigger chance that they will loose. I don't think it is ethical since it is risky but business is business. It is a good thing for them that americans don't take education as seriously as they should or they might not have been able to pull this one off.