Leaders Say Union Funds Will Help Rebuild City
In a meeting that brought back memories of a similar commitment undertaken in the 1970's to save New York City from bankruptcy, the executive vice president of the New York State United Teachers met yesterday with the comptrollers of New York State and City to announce a commitment to invest union pension funds in the rebuilding of NYC. The government and union officials said that the statewide public employees' retirement fund could be used to purchase government backed bonds or to invest directly in the rebuilding efforts. When bankers refused to extend credit to NYC in 1975, it was city labor leaders and rank and file union members who invested over $2 billion in municipal funds to get the city back on its feet.
See CHARLES V. BAGLI, The New York Times, October 4, 2001