Moore offers state pension money for bailout

Posted September 25, 2008

— As Congress hammers out details on the proposed $700 billion bailout of the U.S. financial industry, State Treasurer Richard Moore said he is ready to put state pension money into the pot, if needed.

Moore said he would provide some of the pension fund's $75 billion in assets to assist the bailout in exchange for a guaranteed  interest rate to ensure the more than 800,000 North Carolinians who count on the fund would benefit from the move.

"I think most people out there would say, 'My gosh, if you give me a guarantee of 8 percent from the federal government,' I think they'd take that right now," Moore said.

Bond holdings are keeping the state pension fund steady amid the rises and falls on the stock market, he said.

"Our values have gone up roughly to offset what's gone down, which makes the case of why you want to have a diversified portfolio," he said.

With an agreement reached by lawmakers on a federal bailout, it's unlikely anyone will take Moore up on his offer. He said his main worry with the federal plan is that taxpayers will be left holding too much of Wall Street's bad debt.

"If there was ever a situation where the devil's in the details, this is it," he said.

Even with a bailout, Moore said, the country's financial system is seriously damaged.

"There is well-grounded fear in the financial system," he said, adding that he doesn't see the national economy improving in the foreseeable future.

Eventually, the culture of rewarding risky credit must change, he said.

"Go to the movies tonight. Go to dinner. Go to Acapulco this weekend. I don't care. But don't do it on your credit card. That's what we've got to stop doing." he said.


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  • Realthoughts Sep 26, 2008

    I think it is a smart move. I have watch my 401K and other Mutual funds drop over the last year by 20 and 30 thousand dollars. Everytime I look and my 401K return it shows negatavie growth. It will take at least 3 to 5 years for us to recover from the market down turn. I would much rather see my pension with an 8% growth during these times the see it continue to drop along side the stock market.

    Most guarrantee return are usually around 2%. I would much rather bet on a 8% return then rely on what the market will do. Especially if I were close to retiring.

    Keep in mind no matter what the FED has all the money and can make more if needed. So I say sign me up for 8%.

  • FromClayton Sep 26, 2008

    What? NO! I don't even have any money in that pot and I know that is a bad idea. If I did have some money in there, i would be giving him a phone call and email TODAY!

  • suncat Sep 26, 2008

    Don't gamble with my pension!!!

  • Schpartacus Sep 25, 2008

    It appears I was wrong about point "A" after a quick read of N.C. § 147‑69.1-2, although I'm not sure if the authors of this statute had this kind of loan to the Federal government in mind when they wrote it. The Treasurer is warning consumers about debt yet he is tempting the Federal government to take more of it on.

  • Schpartacus Sep 25, 2008

    A) There are statutes governing how the state employee pension trust fund can be invested. I have to do some research but I think what the treasurer is planning would be illegal unless the statutes are changed.

    B) I saw Richard Moore at Quizno's today.

  • tsquaring Sep 25, 2008

    I think it's brilliant! All those democrats have been on the committees overseeing these mortgage groups and used them as a financial playground. So, it's incumbent for all the state employees that are democrats to bail out these two groups. What, NOW you have no faith in how it's run?

  • davidgnews Sep 25, 2008

    He's out of his mind. What is this, his revenge for not being the gubernatorial candidate?

    Anyone 'trusting' the U.S. government to do the right thing in much of any capacity is a fool.

  • mudracer Sep 25, 2008

    Great day in the morning. Who left him in charge?,(was it you Guvna) and what right does he have to give away State Employees Retirement funds? Where is it gonna end? Bankruptcy? I pay my bills reckon I can get bailed out? Doubtful.

  • sorry Sep 25, 2008

    Is he nuts

  • Mobile Geek Sep 25, 2008

    The only thing I more risky than those mortgage backed securities which led to this mess is the Federal Government. This is the most ridiculous thing I have ever heard of. Of course, the Democrats in Congress are to thank for this mess anyway