It won’t fix the system but it helps.
That’s the response of Kentucky Attorney General Jack Conway to the settlement announced Thursday (August 21) involving Bank of America and the Kentucky Retirement System.
Conway says the bank will pay the KRS some 23-million dollars for defrauding the pension system in a mortgage scheme. That’s a fraction of the system’s 17-billion dollar unfunded liability, a point Conway addressed during a conference call with reporters.
“I can’t go out and make Bank of America pay for what the General Assembly has refused to fund for the last fifteen or seventeen years. What I can do is if we have suffered securities losses because of misrepresentation or securities fraud, I can go out and recover our losses due to that,” said Jack Conway.
Conway says he believes Bank of America will distribute the money it owes the Kentucky Retirement System over the next ten years.
