Following the collapse of Silicon Valley Bank (SVB), the 16th largest bank in the United States a week ago, an Ohio public pension fund for teachers disclosed it lost millions by holding more than $27 million in SVB shares before the bank’s collapse.
The State Teachers Retirement System (STRS) of Ohio said the shares represented a minuscule portion of its overall holdings–03 per cent of the total fund–which held over $88.8 billion in assets as of June 2022.
The statement confirmed that the bank had no shares of Signature or Silvergate banks, which collapsed in the past weeks.
STRS is a pension for over 500,000 current and former public educators in Ohio.
“The collective action taken by the Treasury Department Federal Reserve and Federal Deposit Insurance Corporation to insure and backstop deposits have helped to mitigate the situation facing the banking industry,” STRS wrote in their statement.
“STRS Ohio continues to monitor and assess the impact of these developments.”
The multi-million dollar loss comes as another repercussion of the ongoing financial crisis, as SVB collapsed, followed by the collapse of Signature Bank specialised in providing services to cryptocurrency users, which also collapsed its assets earlier in March.
The financial crisis has impacted other pension funds, including North Carolina State pension fund and Carolina’s public employee retirement fund.