The California Assembly Judiciary Committee has just reported out legislation to force the mammoth State Pension Fund to divest from 485 companies that have been named by www.disinvestterror.com as doing business with Iran, Syria, North Korea, or Sudan.
This legislation, more than almost any other governmental act at the state or federal level, can be the key to frustrating Iranian nuclear ambitions and curbing their sponsorship of terror. With government revenues from the energy sector dropping from $55 billion to $44 billion between last year and this, Iran desperately needs new investment to develop its oil production (which is down 1/3 since the Shah left). But this bill would send a clear signal that companies can’t rush in to fill this gap without paying a huge price. State pension funds, in toto, in the US provide these companies with almost $200 billion of investments. If California follows the lead of Missouri where State Treasurer Sarah Steelman has disinvested already, it will encourage all states to fall in line.