Pennsylvania Takes Another Financial Hit

05.29.09 | Terry Diener

Pennsylvania's cash-strapped government has taken another hit thanks to a new Treasury Department revelation. The state lost $133 million last year when a London-based financial services firm went belly up.

State Treasurer Rob McCord said a 10-year-old securities lending deal with Mellon Bank led to the massive loss in September after Sigma Finance Corporation collapsed. McCord said the largest losses were $57 million for the state teachers' retirement system and $28 million for the state employees' pension fund.

The Tuition Account Program, the Workers' Compensation Security Fund, the State Workers Insurance Fund and the Tobacco Settlement Fund all lost more than $1 million each.