Ohio's public pension systems are changing the banks that handle their 41 billion dollars in combined international investments, as Republican State Treasurer Josh Mandel tries to separate those investments from banks hired under his predecessor's administration.
Fund officials complain the changes required by Mandel are disruptive and could cost millions of dollars. Mandel is forcing the systems to entrust their global assets to JP Morgan Chase or CitiBank instead of State Street Bank and Bank of New York Mellon. Mandel says the moves are meant to protect investments amid an investigation of the administration of former Democratic Treasurer Kevin Boyce and lawsuits against the replaced banks. Boyce is also a former Columbus City Council member. The Ohio Public Employees Retirement System switches next month. The State Teachers Retirement System switches in December.