Tuesday, June 22, 2010

BP (NYSE:BP) Oil Spill Costs U.S. State Pensions $1.4 Billion

While the majority of the focus is on the effects of BP's (NYSE:BP) oil spill disaster in the ocean and to wildlife, it's effects have also touched the U.S. State pension. The California Public Employees fund has lost a total value of close to $284.6 million. There are 42 state retirement accounts that are tied into BP's stock prices.

The U.S. Public Pension fund has been struggling since last year, with a decline of 21 percent total investment losses. As of May 1 of this year, they held more than $300 million shares in BP. The largest U.S. Pension fund, Calpers at $210 billion, had a total of 58.2 million shares as of April 20th. This is more than any other state pension. They saw a decline from $585.7 million down to $301 million.

Brad Pacheco, a spokesman said, " Calpers has a well diversified portfolio and long term investment strategy to weather these ups and downs, even those caused by unusual circumstances such as this one. We will be engaging BP on corporate governance to discuss the impact of the crisis on the value of the company."

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