Addendum to post below.
As fiduciaries you are exposing the owners of your portfolios to significant foreseeable risk if you have suspicions about the names in your portfolios and continue to hold them.
When my favorite counselor returns from hobnobbing at the St. Tropez Regatta (jeez, what am I doing at a keyboard?) I'll know more.
As things stand right now and being somewhat conversant with judicial and regulatory interpretations of the Prudent Man Rule*, there is liability.
Here's the list of fiduciary petitioners:
California Public Employees' Retirement
System
California State Controller,
John Chiang
California State Teachers’ Retirement System
California State Treasurer,
Bill Lockyer
F&C Management
Florida Chief Financial Officer,
Alex Sink
Kentucky State Treasurer,
Jonathan Miller
Maine State Treasurer,
David G. Lemoine
Maryland State Treasurer,
Nancy K. Kopp
New Jersey State Investment Council,
Orin Kramer, Chair
New York City Comptroller,
William C. Thompson, Jr.
The rest of the petitioners can be found at the Environmental Defense links below. This is going to be a messy process, huge amounts of money will be made and lost (Hundreds of billions? Trillions?), To misquote Betty Davis in "All About Eve": "Fasten your seatbelts, it's going to be a bumpy ride".
*Here are Justice Putnam's exact words:
Those with the responsibility to invest money for others should act with prudence, discretion, intelligence, and regard for the safety of capital as well as for income.
