Governor okays divestment from Iran

Taking a stand against Iran's ties to terrorism, Gov. Arnold Schwarzenegger on Sunday signed a bill requiring the state's pension funds to divest from companies that do business with that country's energy and defense sectors. Daily News.

Estimates vary on how much money state funds have invested in companies that do business with Iran, but it could run as high as $24 billion. Also, divesting that much stock could cost more than $120 million in expenses such as taxes and commissions.

The state's two major pension funds have vigorously opposed the bill, arguing that it runs counter to their constitutionally mandated financial responsibility to state employees and government agencies.

But Schwarzenegger said the state should make a strong statement against terrorism by exerting the financial influence of the nation's two largest public pension funds.