Summary of City Comptroller’s Investment Decisions Regarding Israel Bonds
Recent actions by City Comptroller Brad Lander have come under scrutiny following a letter from First Deputy Mayor Randy Mastro. The letter, dated July 10, addresses concerns regarding the withdrawal of New York City pension funds from State of Israel Bonds, a move Mastro associates with the global Boycott, Divestment, and Sanctions (BDS) campaign against Israel. Mastro emphasized the need for a review of Lander’s decision-making process, criticizing the potential detrimental financial impact on city pensioners who rely on these investments. Historically, New York City has maintained a long-standing investment in Israel Bonds, which have proven to be a solid financial decision for pension funds.
Lander’s recent actions have led to a steep decline in the city’s holdings in Israel Bonds, dropping from tens of millions to less than $1.2 million, primarily within the Police Pension Fund. Comparatively, the state pension system holds over $360 million in similar investments. Mastro pointed out that past comptrollers consistently reinvested in Israel Bonds, suggesting Lander’s decision is not only a departure from established practice but could potentially harm the financial returns of pension fund portfolios. These bonds typically offer an average return of about 5% annually, highlighting the financial implications of divesting.
Mastro stressed that Lander’s rationale — claiming a broader policy against investing in foreign sovereign debt — seems to target only Israel Bonds, raising ethical questions regarding his fiduciary responsibilities to city pensioners. The concerns revolve around Lander’s public statements juxtaposed with the reality that divesting from Israel Bonds is isolated while investments in other foreign sovereign bonds remain. This inconsistency has prompted a demand for clarity and transparency in the decision-making process, particularly given the significant historical returns associated with Israel Bonds.
The interactions between Lander and Mamdani, an advocate of the BDS movement who received support from Lander during the Democratic primaries, further complicate the narrative. This alliance has raised eyebrows due to its implications on Lander’s financial stewardship, especially as he seeks to balance constituents’ diverse views while managing the city’s finances. Mastro highlighted how these political dynamics could potentially influence Lander’s decision-making concerning investments that directly impact public funds.
As Mayor Eric Adams prepares for re-election, his administration’s stance on these investment issues could significantly affect his relationship with Jewish constituents. Adams faces challenges from various candidates, including the Democratic nominee Mamdani, who has a well-documented history supporting the BDS initiative. The mayor’s approach is critical not only for his campaign but also for the trust of communities affected by significant financial decisions like those concerning pension investments.
While Lander’s office has refrained from delivering public commentary on this situation, he has previously addressed similar concerns during his campaign. A representative stated that Lander has not divested and maintains substantial investments in Israeli companies despite his policy against foreign sovereign debt. This situation represents a broader tension between political ideology and fiscal responsibility, posing challenges for Lander as he navigates the intersection of governance and personal beliefs.
