California Terminates Iranian Investments

California Governor, Arnold Schwarzenegger, signed a measure to ban public plan investment in Iran. California is home to the two largest pension funds in the United States, California Public Employees' Retirement System and the California State Teachers' Retirement System, with combined assets of $428 billion. Early news reports estimate that the plans will be forced to sell $3.4 billion in assets. The final divestment costs are yet to be determined, but unloading the shares at a conservative cost of 0.25% would cost the plans nearly $10 million.