Sen. Bob Casey (D-Pa.) supervised a potentially risky investment worth more than $31 million from state worker pensions into a Chinese government-backed firm — that has since been deemed a threat to the US — while he served as the commonwealth’s treasurer in 2006.
A state report on the fund from 2007 notes holdings by the Pennsylvania State Employees’ Retirement System in China Mobile Ltd. valued at $31,386,930 — the eighth-largest foreign asset held by the state at the time, joining a list that included major brands like Nestle, UBS and BP.
China Mobile has since been designated a national security threat, with the Department of Defense in June 2020 noting the company was part of the Chinese Communist Party’s “military-civil fusion national strategy.”
Sen. Bob Casey (D-Pa.) as Pennsylvania treasurer in 2006 placed more than $31 million of state employees’ pensions into a Chinese firm.NurPhoto via Getty Images
The New York Stock Exchange delisted China Mobile in January 2021 following the Pentagon’s designation.
President Biden, in a June 2021 executive order, further demanded US shareholders divest from the company, citing China Mobile as one of many threats “posed by the military-industrial complex of the People’s Republic of China.”
Founded in Hong Kong on Sept. 3, 1997 — weeks after the territory was handed over to Beijing by the United Kingdom — China Mobile is owned by China Mobile Communications Corp., which is a subsidiary of the People’s Republic of China.
President Biden in 2021 called China Mobile one of many threats “posed by the military-industrial complex of the People’s Republic of China.”Bloomberg via Getty Images
The China Mobile assets were one of many lucrative holdings Casey oversaw when he served as state treasurer from 2005 to 2007, investing much of Pennsylvania taxpayers’ money in international equity.
The holdings in China Mobile were overseen by Casey as the fund’s custodian as well as 10 other board members of the Pennsylvania State Employees’ Retirement System, including former Pennsylvania House members Nicholas J. Maiale, Michael F. Gerber, and Robert W. Godshall; and former Pennsylvania state senators Gibson E. Armstrong, Raphael J. Musto, and M. Joseph Rocks.
A spokeswoman for Casey’s office told The Post Monday that the senator should not be held responsible for the investment.
China Mobile is owned by China Mobile Communications Corp., which is a subsidiary of the People’s Republic of China.Xinhua News Agency via Getty Images
“This story is a false attack — the investment in question was made before Bob Casey became State Treasurer in 2005,” she said.
“No one is tougher on China than Senator Casey. During his time in the Senate, he has fought to crack down on China’s currency manipulation, and against unfair trade practices and US corporations that invest in China at the expense of American workers,” she added.
The spokesperson did not respond to a follow-up question about whether Casey approved further investments in China Mobile in 2006.
Casey has touted his experience handling the Pennsylvania state employee retirement fund, both as treasurer and in his eight years as the commonwealth’s auditor general.
Chinese President Xi JinpingGetty Images
“As Auditor General and State Treasurer of Pennsylvania, I took a particular interest in the two state public pension funds, for teachers and public employees, which are traditional defined benefit plans,” Casey said in a July 2008 press release.
“As Auditor General, I audited both funds and as State Treasurer, I served as a trustee for both funds. It gave me an insight into the benefits of well-run defined benefit plans, both to retirees and to our economy as a whole,” he added.
Additionally, Pennsylvania’s pension fund paid $15,315 to the state-owned Bank of China for trading broker commissions under Casey in 2006.
Most state employees are required by law to enroll in the Pennsylvania State Employees’ Retirement Code, which handles benefits for around 240,000 employees and retirees, according to its website.
Employees gain a lifetime pension after contributing roughly 6% to the fund for a minimum of five years, or at least 10 years if they were hired after Dec. 31, 2009.
Casey was succeeded as state treasurer by Robin Wiessmann, whom Biden chose last April to serve on the board of Amtrak.
Wiessmann is listed as state treasurer on the financial report for 2006, since the document was finalized in June 2007, six months after Casey was sworn in as a senator.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
