A Democratic bill that would impose limits on institutional investments in energy commodities failed to pass a procedural vote in the Senate this morning, but aides to Democratic and Republican Senate leaders said they would continue working through the weekend toward a compromise that could clear the way for a full vote, according to Pensions & Investments.
The legislation, introduced by Senate Majority Leader Harry Reid, D-Nev., and other Senate Democrats on July 15, has been stalled by a dispute between Senate Democrats and Republicans about what other provisions besides speculation limits should be included in the bill.
Also yesterday, the $230.2 billion California Public Employees’ Retirement System, Sacramento, made clear to federal legislators that it opposes any effort to limit commodities investments.
“CalPERS stands ready to work with the Congress and with the CFTC to respond to abusive market practices,” according to a CalPERS statement sent to legislators. “However, CalPERS strongly opposes legislation that would either directly or indirectly prohibit and/or unnecessarily limit sophisticated institutional investors from investing in commodity-based securities.
“Federally mandated restriction on our ability to fully exercise our fiduciary responsibility would establish a dangerous precedent impacting countless institutional investors to the detriment of millions of workers, retirees and their beneficiaries, plan sponsors and the overall U.S. economy,” CalPERS said.
On Thursday, the House Agriculture Committee approved legislation that also addresses commodity speculation but has no pension fund investment limits. That measure now goes to the House floor for a vote.
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