Rhode Island is expected to lose nearly $2.5 million in pension fund investments after two banks collapsed last week.
The Employee Retirement System of Rhode Island, which is a state-run investment plan that funds pensions for thousands of retired state and municipal workers, had just over $2.6 million invested in Silicon Valley Bank and the New York-based Signature Bank. Both banks failed in recent days.
SVB COLLAPSE: WHITE HOUSE PROMISES ‘THIS IS NOT 2008’
Portions of the $2.6 million are also invested in two other struggling banks: First Republic and Silvergate Capital. The funds are now worth an expected $185,535. However, the funds are only a small portion of the state’s total pension fund, which is estimated at $10.3 billion.
“ERSRI has had exposure to most of these assets for number of years as part of the Russell 3000 index in the U.S. public equity area,” Michelle Moreno-Silva, a spokeswoman for General Treasurer James Diossa, told WPRI-12 in an email. “We’re assuming that there is little value to the assets with the exception of First Republic which is still trading.”
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Federal regulators announced Monday that depositors would have access to their money through an emergency fund at both banks. President Joe Biden said the federal government will not bail out banks, but he guaranteed SVB deposits, including uninsured amounts, so customers could have access to their money as soon as Monday.
“All customers who had deposits at these banks can rest assured, rest assured they’ll be protected and they’ll have access to their money as of today. That includes small businesses across the country that bank there and need to make payroll, pay their bills, and stay open for business,” Biden said Monday morning. “No losses will be borne by the taxpayers.”
