* Mayor Emanuel wants divestment…
Chicago Mayor Rahm Emanuel said Monday he was ordering all city pension funds to divest any investments they have in gun manufacturers.
“We’re going to divest of any investment in any gun manufacturer,” he said.
He said he would lead a charge of mayors across the country urging them to do the same.
* But despite his comments today, his press release only says it’s about assault weapons..,
MAYOR EMANUEL ORDERS REVIEW OF PENSION AND RETIREMENT FUNDS FOR DIVESTMENT OF ASSAULT WEAPON COMPANIES
Funds Will Be Asked To Divest From Companies that Manufacture or Sell Assault Weapons
Mayor Rahm Emanuel today ordered Comptroller Amer Ahmad to request a portfolio analysis from the five pension and retirement funds for city employees to determine if fund managers hold underlying debt or equity positions in companies that manufacture or sell assault weapons as the first step towards removing these companies from the investment plans.
“We cannot support or invest in companies that profit from the proliferation of assault weapons and the violence these guns bring to our communities,” said Mayor Emanuel. “If our fund managers have invested in a company that manufactures or sells assault weapons, I will ask them to remove these investments from our retirement funds.”
Ahmad is requesting the review from the five major funds, including the Fireman’s Annuity & Benefit Fund of Chicago, the Laborers’ & Retirement Board Employees’ Annuity and Benefit Fund of Chicago, Municipal Employees’ Annuity & Benefit Fund of Chicago, Policeman’s Annuity & Benefit Fund of Chicago and the City of Chicago Deferred Compensation Plan. The five funds contain more than $13.5 billion in assets.
Will Burns, Alderman of the 4th Ward, will join the Mayor to introduce a resolution at City Council this week to support the review.
“Just as these weapons have no place in our communities, these companies have no place in the retirement planning for our employees,” said Burns. “The damage caused by these weapons is far greater than any return on investment.”
He may have gone beyond his intended remarks. We’ll see.
*** UPDATE *** He did go beyond what he intended to say…
In his speech, Emanuel said, “We’re going to divest of any investment in any gun manufacturer,” but he later clarified that he was talking about those who make or sell assault weapons.
[ *** End Of Update *** ]
LIVE special session coverage...
- Roger Sanders - Monday, Jan 14, 13 @ 9:23 am:
Maybe he’ll consider divesting in companies that own charter schools as well. They are an attack on public education.
- Reality 101 - Monday, Jan 14, 13 @ 9:30 am:
Well let’s make sure when the funds are divested that no profit was made. God forbid they make a profit. If there was a profit the Mayor should take that money and put it as an extra payment to the schools or hire extra police.
- Reality 101 - Monday, Jan 14, 13 @ 9:32 am:
Actually, scratch that proposal above. He should donate the money. He shouldn’t spend that gun tainted money on city services. Put it in a non for profit that helps at risk kids. Maybe an after school program.
- Commonsense in Illinois - Monday, Jan 14, 13 @ 9:35 am:
This is exactly the opposite approach that should be taken with respect to pension funding. While I’m not sure what Chicago’s unfunded accrued liability is, what government ought to be doing right now is throwing off the shackles that limit the fund managers. While there might be some “less attractive” companies/countries out there, limiting investment options not only hampers fund managers from obtaining maximum returns, but such litmus tests are only counter-productive.
- wordslinger - Monday, Jan 14, 13 @ 9:44 am:
–Chicago Mayor Rahm Emanuel said Monday he was ordering all city pension funds to divest any investments they have in gun manufacturers.–
Um, can he do that?
I’m not naive as to the influence Chicago’s mayor can bring to bear on the city’s pension boards. But a direct order?
Can he pick all the investments? Thumbs up or thumbs down? Does he?
The gun issue aside, that kind of power should bear some scrutiny from the council (laugh track sound here), press and, inevitably, the federal lawyers down the street.
I like the idea. But I like democracy and checks and balances, too.
Remember, Chicago is a Strong Council/Weak Mayor form of government (laugh track sound here). Or it was for Mayor Washington, anyway.
- NoNo - Monday, Jan 14, 13 @ 9:52 am:
Alrighty now that i know America and the cities are pushing to push guns out of their hands i will know in a year or so will be the best time to rob and cause riots throughout America
- CU Voter - Monday, Jan 14, 13 @ 9:54 am:
does this mean a divestment in all defense stocks? or is an F-14 not an assault weapon?
- Rich Miller - Monday, Jan 14, 13 @ 9:56 am:
NoNo, that’s enough. Threatening violent upheaval and lawlessness isn’t allowed on this blog. You’re banned.
- Huh? - Monday, Jan 14, 13 @ 10:00 am:
What about divesting stocks in companies which are selling tabacco products and booze, and other so-called morally indefensable products?
Why stop at guns? Why not sell off any stocks that deal with military hardware, jets, tanks, ships, missiles?
Why not sell off stocks in any company that sells or has ever sold guns? What about selling off stocks of any company that has ever invested in a gun company?
- Cook County Commoner - Monday, Jan 14, 13 @ 10:15 am:
Political correctness is not a good investment strategy. If the pols are serious about gun control, then they should buy big into the industry, make some money for their retirees and advocate for change as a significant stock holder.
And why stop with the gun manufacturers. Divest the chemical companies that make components of the cartridge propellants, the mining companies that sell metals to gun manufacturers and ammo manufacturers, the cattle owners who provide leather for holsters, etc.
- wordslinger - Monday, Jan 14, 13 @ 10:15 am:
Huh?, Socially Responsible Investment strategies are hardly new.
In the English-speaking world, the Quakers and John Wesley were the earliest proponents, refusing to invest in the slave trade.
Any financial planner will set you up. In addition to an overall strategy, there are hundreds of Socially Responsible mutual funds that exist because they bring returns.
Government funds, institutions and individual investors all of the world put their money where their mouths are.
- Logic not emotion - Monday, Jan 14, 13 @ 10:16 am:
Isn’t Rahm fairly knowledgable about investments? Is it possible, he’s just trying to cash out since firearm’s related stocks have done so well or that he has inside information on proposals Obama will make?
On the flip side, this may provide a buying opportunity for those of us who support firearm companies as they have done well and probably will continue as long as the radical proposals to restrict access by law abiding, mentally sound individuals aren’t successful.
- Downstater - Monday, Jan 14, 13 @ 10:21 am:
Rahm’s actions could lead to pension plans underperforming, which could result in the pensions plan returns to be lower. Bad decision by the Rahm-inator.
- Huh? - Monday, Jan 14, 13 @ 10:36 am:
Slinger - I have this discussion with my wife every time we buy stock. Personally, I am not politically correct or socially responsible when it comes to investing. I want a good return on my money.
If the City of Chicago is going to be “socially responsible” when investing the pension funds, then they ought to go all the way.
- Formerly Known As... - Monday, Jan 14, 13 @ 10:38 am:
Perhaps he can do something about the skyrocketing murder rate in his own backyard before moseying off to “lead a charge of mayors across the country”.
- Formerly Known As... - Monday, Jan 14, 13 @ 10:41 am:
At this point, I’d even take him leading “a charge of mayors across the” greater Cook County area to crack down on violence, poverty and mental illness.
Or maybe even reopening a few of the city’s mental health clinics he recently shuttered.
No headlines in that, I suppose.
- Logic not emotion - Monday, Jan 14, 13 @ 10:44 am:
Given his inability to actually do something that addresses the underlying issues contributing to the violence, don’t you think all these actions are just posturing so it looks like he is actually doing something positive when he isn’t? He’s actually making things worse for law abiding citizens under the guise of improving things much like ancient doctors used to do bloodlettings and other stuff to cure illnesses and maladies.
- wordslinger - Monday, Jan 14, 13 @ 10:52 am:
Huh, you can make or lose money in anything. I’m more interested in whether the mayor really has sole control over pension fund investments.
I was under the impression that pension boards were to exercise some independence from direct political control.
- Formerly Known As... - Monday, Jan 14, 13 @ 10:54 am:
=== Maybe he’ll consider divesting in companies that own charter schools as well ===
Sorry Roger. No go.
Rahm was too busy divesting of union janitors at O’Hare airport.
Then he was busy granting those contracts to a company headed by an individual with federal onvictions for mob racketeering. That’s in addition to a few contracts similar folks already have.
At least that’s what the media tells us:
http://articles.chicagotribune.com/2012-12-06/news/chi-emanuel-tries-to-change-subject-on-ohare-deal-as-mob-questions-mount-20121205_1_airport-contract-mob-ties-janitorial-workers
http://www.dailykos.com/story/2012/12/07/1168107/-Is-the-Mob-cleaning-up-at-Chicago-s-O-Hare-Airport#
Maybe he can squeeze something in after the upcoming round of public school closures?
- Scott - Monday, Jan 14, 13 @ 10:57 am:
So if Obama come out next week with an executive order banning certain weapons and ammo, can we prosecute Rahm for insider trading?
- wordslinger - Monday, Jan 14, 13 @ 11:06 am:
–So if Obama come out next week with an executive order banning certain weapons and ammo,–
See that as a possibility, do you?
On this planet, the cynical fear and paranoia manufactured about Obama and guns over the last four years has been a huge boon for gun and ammo sales.
- Crime Fighter - Monday, Jan 14, 13 @ 11:07 am:
Word - Influencing pension boards? Where are Cellini & Bauman when you need them?
- Cincinnatus - Monday, Jan 14, 13 @ 11:11 am:
Portfolios should be about maximizing the profits for the investors, not an instrument of social policy. If we are going to use portfolios in such a manner, we should not have guaranteed returns.
- USMCJanitor - Monday, Jan 14, 13 @ 11:20 am:
Wodslinger,
we dont often agree on much when it comes to guns, but you are right when you say:
“Huh, you can make or lose money in anything. I’m more interested in whether the mayor really has sole control over pension fund investment”
So a mayor can make a political decision and order retirement funds that have a manager with a fiduciary responsibility to make money for the members… Whats next? if the mayor decides “No energy companies that deal with Nat Gas or Oil?”
Or no companies that “outsource to china”!
I cant believe a Mayor has this type of power and I cant believe the people that will depend on these funds (sorely underfunded and not making the returns expected) would not rise up and fight this… If not for the “guns bad” thoughts today, but for what it means for future investments.
- Justbabs - Monday, Jan 14, 13 @ 11:23 am:
It may be a very profitable time to divest. Forget insider information, look at the news. I also seem to recall q major effort to divest campuses and funds of products that supported the apartheid government in South Africa. Divestment can be a useful tool.
- Just Observing - Monday, Jan 14, 13 @ 11:26 am:
So basically Rahm is advocating to divest from the companies that supply firearms to the Chicago Police Department and U.S. military.
- walkinfool - Monday, Jan 14, 13 @ 11:29 am:
This is bush league politics.
As if this will have any impact on that industry.
- Cheryl44 - Monday, Jan 14, 13 @ 11:47 am:
I really don’t understand why anyone would let anyone else be in charge of where (and if) their pension money is allocated. I’ve been getting a decent return on my Social Choice TIAA-Cref account for years now, and guess what? No gun stock, no tobacco stock, no clubbing baby seals stock.
- Arthur Andersen - Monday, Jan 14, 13 @ 11:49 am:
Crime Fighter, (yeah I bet) guess you never heard the old A. Lincoln quote about better to keep one’s mouth shut and be thought a fool than to open it and remove all doubt.
- Just Observing - Monday, Jan 14, 13 @ 12:04 pm:
=== I really don’t understand why anyone would let anyone else be in charge of where (and if) their pension money is allocated. I’ve been getting a decent return on my Social Choice TIAA-Cref account for years now, and guess what? No gun stock, no tobacco stock, no clubbing baby seals stock. ===
I don’t understand your post. Nobody should be in charge, but yet someone should be in charge to ensure the money is not invested in “irresponsible” companies?
- Crime Fighter - Monday, Jan 14, 13 @ 12:09 pm:
Whatever you say AA!
- Arthur Andersen - Monday, Jan 14, 13 @ 12:18 pm:
word, technically, it’s a request for a portfolio review, other hyperbole notwithstanding.
That is probably enough to insulate him from any legal troubles.
That said, the “request”, in public, in this tenor, is unusual and is uncomfortably close to the line for my two cents worth.
- sam m - Monday, Jan 14, 13 @ 1:02 pm:
“Assault” rifles are not the weapons killing Chicago gangbangers.So why cut profit from City investments by attacking their manufacturers who make money on these investments? Maybe some other motive?
- wordslinger - Monday, Jan 14, 13 @ 1:03 pm:
AA, I suspect you’re right, but the lede on the story and Emanuel’s own comment…
–“We’re going to divest of any investment in any gun manufacturer,”–
…are emphatic.
- soccermom - Monday, Jan 14, 13 @ 1:34 pm:
Rahm is talking about pension funds, not individual retirement portfolios.
- Irish - Monday, Jan 14, 13 @ 1:40 pm:
So this means taking back or not offering any incentives to any entity, company, etc. that profits from the sale of guns, ammo, etc. etc.? I think Sears still sells guns, as do others that have offices/stores in Chicago, Orvis, Cabela’s, Bass Pro, to name a few. And the Illinois Department of Natural Resources condones gun use through their hunting programs and they just built, a couple of years ago, a large facility in southern Illinois dedicated to gun use where buildings were built to house showrooms and retail outlets for all of the gun manufacturers in Illinois, so of course any money from them is tainted so Rahm better forget any more money from them for Chicago River Cleanup, $10 mil., money for museums, $15 mil., any money for the Millenium Reserve, $$$, lake shore development and protection, reef building for fish habitat, money for fighting asian carp, etc. etc.
And before any body says that is Federal dollars so it is not really from IDNR, just know that it is money sent back to the state through a couple of Federal Acts, the Pittman Robertson Act and the Dingell Johnson Act, where states through hunting and fishing programs qualify for Federal reimbursement of taxes paid on guns, ammo, hunting, and gunning, supplies along with fishing supplies.
- Cheryl44 - Monday, Jan 14, 13 @ 1:47 pm:
Just–I get to decide which TIAA account I want to put my money in. I don’t get micromanage it, but I can tell them I don’t want my money invested in companies that sell tobacco products or club baby seals. I’m sure there’s a fund for people who want to invest in clubbing baby seals as well.
- Slick Willy - Monday, Jan 14, 13 @ 3:48 pm:
***I’m sure there’s a fund for people who want to invest in clubbing baby seals as well.***
Hillerich & Bradsby is a privately owned company… :)
- zatoichi - Monday, Jan 14, 13 @ 4:06 pm:
These investments were prefectly fine 2 years ago. A series of bad events happened and suddenly it is PC to walk away from assault guns. Handguns kill far more people, just not at one time. I do not own any guns, feel no need for one, and understand the arguments. Investing based on news events is generally not going to work out too well for most people. It temporarily sounds good on the evening news. Start down that slipperly slope and all types of potential investments that some group does not like gets pulled into the picture. Gonna PC them all?
- Rod - Monday, Jan 14, 13 @ 4:09 pm:
To characterize Mayor Emanuel as an opportunist on the gun issue would be an understatement. Most of us that follow politics already know that that Mayor Emanuel when he was Obama’s chief of staff adopted a very different position on guns. In 2009, according to the book Killer Catcher, Emanuel was furious with Attorney General Holder who held a press conference in February of 2009 saying that the Obama administration was going to reinstitute, push the assault weapons ban, and that he sent word to Justice that Holder needed to “shut the [F] up on guns.”
This pension fund disinvestment strategy is simply one more example of Mayor Emanuel’s opportunism. As many of us know Mayor Emanuel is a big supporter of Israel and I have no objection to that. The Mayor is a member of the Anshe Sholom B’nai Israel Congregation, an Orthodox synagogue on the city’s North Side which has had in the past speakers from the Israeli Defense Forces and even once from the Mossad the national intelligence agency of Israel. One of that nation’s foremost companies is the Israeli SK group which owns Israel Weapon Industries (IWI) Ltd. that makes some of the most lethal assault weapons on earth including the UZI and the MegaGun Jericho pistol-rifle. Israeli arms exports are currently around $7 billion a year, and some of these exports are semi-automatic pistols that come to the US.
I just could not imagine Mayor Emanuel giving a lecture to Orthodox Jews in Chicago about the problems of Israel’s arms industry or about asking armed Orthodox Jewish settlers in the west bank to give up their guns and depend solely on the Israeli Defense Forces. In stating that I am not endorsing Israeli land seizures on the west bank, but I am pointing to the armed reality of Jewish civilians in that situation. The Mayor is jumping on the gun control band wagon to create cover for his own failures to contain our city’s current murder epidemic. The Mayor represents political opportunism at its worst.
- wordslinger - Monday, Jan 14, 13 @ 4:43 pm:
–***I’m sure there’s a fund for people who want to invest in clubbing baby seals as well.***
Look to Norway and Greenland. My peeps make a fortune from it. They still kill whales, too.
They used to pillage every city on every navigable river in Europe. So, they’re mellowing. They’ll calm down, eventually.
- Scott Thorsen - Monday, Jan 14, 13 @ 5:55 pm:
What gun company can you invest it? Most are privately held. Springfield? Rock River? Rock Island? Cerebus boigh a vast majoroty of companies including Remington and Bishmaster in tue past few years. Does the city have onvestments in the venture capital company?
Will Rahm tell us what penaion investments where invested in gun companies. I suspect there are none.
- Todd - Monday, Jan 14, 13 @ 6:41 pm:
So maybe all the gun and ammunition companies should refuse to sell anything to the CPD or their officers. If you don’t like our products, we won’t sell them to any of you.
Lets see how long their ammo reserves for training last. . .
Cuase right now the gun companies can divest themselves of anti-gun agencies
- wordslinger - Monday, Jan 14, 13 @ 6:57 pm:
–So maybe all the gun and ammunition companies should refuse to sell anything to the CPD or their officers. If you don’t like our products, we won’t sell them to any of you.–
Well, that would be a first. They’ve never had a problem selling guns and ammo to the murderous commies, fascists, tyrants, druglords, warlords, gangsters and lunatics of the world.
Why the boys in blue, the CPD? Because the mayor makes a vague comment about “disinvestment.” How sensitive.
Perhaps a strict mental health review would be in order for gun manufacturers, if it stings that bad.
Why would that matter to the NRA, anyway? You guys are fighting the good fight for the law-abiding gun owners of America, not the international corporations that manufacture guns and ammo and will sell them to anyone who has the money.
Right?
Somebody says “disinvestment” and they get
- Petey Pal - Monday, Jan 14, 13 @ 7:41 pm:
LOL and wee Rahm made how much in the Exelon deal? Great idea, dump the best performing stocks in your portfolio, LOL.
Here’s some good news - the Illinois State Rifle Association was named NRA’s “Association of the Year” today. Good going guys!
- Petey Pal - Monday, Jan 14, 13 @ 7:44 pm:
Ditto - all firearm manufacturers should refuse to do business with the Illinois State Police, the Chicago PD and any other “law enforcement” agency tied to a jurisdiction that is anti-gun. Coppers could be like Bobbies, LOL.
- wordslinger - Monday, Jan 14, 13 @ 7:56 pm:
Sorry, I had a little fragment typo at the end of my last post.
But this still intrigues me:
–So maybe all the gun and ammunition companies should refuse to sell anything to the CPD or their officers. If you don’t like our products, we won’t sell them to any of you.–
Maybe they should refuse to “sell them to any of you. ‘Maybe they should not “sell them to any of you” whose politics they don’t like.
That’s the American Way that we’re all fighting for, right?
Maybe guns and ammo manufacturers (not representative government, God forbid) should decide who will be armed and who will not be armed in the United States (sounds like crazy Obama paranoia to me, but that’s just crazy -paranoid-me).
Maybe gun manufacturers should decide who will have a police department and who won’t.
Is this idea part of that NRA promise after Newtown to propose “meaningful contributions to help make sure this never happens again.”?
How do we get from A to B there?
If that’s the way it should go down, can we get some standards as to who the gun industry will allow guns to be sold to? Under the 2nd Amendment, of course.
Oh, I’m just messing with you — they’ll sell guns to anybody, they don’t care!
But Todd, your idea that gun manufacturers should pick and choose which government law enforcement agencies can or cannot be armed is duly noted.
Will I find that idea in the 2nd Amendment, Heller or McDonald?
- wordslinger - Monday, Jan 14, 13 @ 8:24 pm:
–Here’s some good news - the Illinois State Rifle Association was named NRA’s “Association of the Year” today. Good going guys!–
From the ISRA website, verbatim;
–As many of you know by now, there is a near-viral posting going around the internet that insinuates that Chicago Police Superintendant Garry McCarthy plans to train Chicago police officers in methods of setting up concealed carry permit holders for murder.–
–In comments made during testimony, committee Democrats stated plainly that HB815 and HB1263 were “first steps” and that these bills have as their objective the creation of a “more civil society.” In other words, elimination of lawful gun owners is a required first step for creating a more civil society. Of course, there was no mention of the impact of eliminating criminals.–
–The Communist Party of China demands the U.S. should disarm.–
–Like all people of good conscience Illinois’ 1.5 million law-abiding firearm owners are shocked and saddened by the crime that took place recently in Newtown, Connecticut. The families of the victims are certainly in our thoughts as they work through the anguish that accompanies the sudden and violent loss of a loved one.
The heartfelt compassion we feel for the victims of this crime is matched only by the deep disdain we feel for Governor Pat Quinn, Mayor Rahm Emanuel, Mayor Michael Bloomberg and the rest of the political opportunists who have swooped down on Newtown like a flock of vultures hungry to devour the 2nd Amendment.==
Good going, guys?
- sam m - Monday, Jan 14, 13 @ 8:30 pm:
After reading the comments[including mine] it seems that the word “gun” causes more reaction, from both sides, than religion.Wow!
- Petey Pal - Monday, Jan 14, 13 @ 8:53 pm:
@ Wordslingy: What’s your point?
- Arthur Andersen - Monday, Jan 14, 13 @ 9:00 pm:
Rod, that is the weakest pro-2A argument I’ve read yet, and I’ve read quite a few.
- wordslinger - Monday, Jan 14, 13 @ 9:10 pm:
Petey, if you have to ask…
…watch out for that “near viral posting” (whatever that means) where Supt. McCarthy sets up conceal-carry permit holders (in what state?) on bogus murder charges.
What a sinister, evil man. Training Chicago police officers to falsely accuse citizens of other states of murder.
How, after a lifetime of public service, did he come to this wicked end? And just to get you all, you amazingly important statesmen (or should I say, revolutionaries?)!
Who volunteers to be the stiffs in this ISRA McCarthy/Murder Frameup fantasy? No corpse, no murder.
Listen, Petey, you and the ISRA aren’t paranoid. Everyone is just out to get you. Everyone. Look under the bed.
The Commies in China, too. And they’re not really Commies anymore. Not like Obama…….
- Petey Pal - Monday, Jan 14, 13 @ 9:20 pm:
@ Slingy: You seem a little anxious and you speak in riddles. I believe the posting that is being spoken of was something that WVON aired. I think that the ISRA was advising people not to believe it. You really should cut back on the Red Bull.
- wishbone - Monday, Jan 14, 13 @ 9:22 pm:
Its amazing, Illinois coal kills far more people each year than assault rifles, and we are proud of our growing exports. Maybe Rham can take this killer on next.
- What is to be done? - Tuesday, Jan 15, 13 @ 1:26 pm:
Just keep Daley’s nephew away from our pension funds