Full Breakdown
NYC Comptroller Mark Levine Reverses Pledge to Buy Israeli Bonds
By Drooid · · How we work
Core Decision
New York City Comptroller Mark Levine announced that the city will not purchase new Israeli government bonds, breaking a campaign promise made during the 2025 election. Levine said the reversal is driven by “technical challenges” and “financial considerations,” emphasizing that the analysis is ongoing and that the decision does not reflect a change in his personal support for Israel.
Background & Context
- The city’s five public pension funds manage roughly $326 billion for more than 750,000 workers and retirees.
- Under former Comptroller Brad Lander (2022-2025), the portfolio held about $40 million in Israeli bonds, which were allowed to mature in 2023 and not renewed.
- Lander’s policy against foreign sovereign debt was later echoed by Mayor Zohran Mamdani, who argues New York City does not purchase bonds from any nation.
- During the 2025 campaign, Levine pledged to restore Israeli bonds, describing them as a “sound investment.” He reiterated this position in a January interview and again in April.
Data & Statistics
- Discretionary investment authority: Levine controls about $1.3 billion of the pension system’s assets.
- Current Israeli holdings: Roughly $285 million in Israeli equities and other fixed-income securities.
- Bond terms offered this month: Two-year dollar-denominated bonds at 5 % annual yield; three-year bonds at 5.53 %.
- Credit ratings: Fitch rates Israel A with a negative outlook; S&P and Moody’s have moved from negative to stable.
- State comparison: New York State’s pension system holds between $333 million and $360 million in Israeli bonds.
Official Statements & Responses
Levine noted personal ties to Israel—being Jewish, speaking Hebrew, and having family there—but said those do not influence the investment judgment. A spokesperson reiterated that all choices are guided by fiduciary responsibility to protect long-term pension beneficiaries.
Criticism & Opposition
- Scott Stringer, former city comptroller, called the rationale “nonsense,” arguing Israeli bonds have historically delivered strong returns.
- Dov Hikind, founder of Americans Against Antisemitism, labeled Levine a “coward” and “sellout,” accusing him of yielding to “anti-Israel” pressure.
- Moshe Davis, a spokesperson for Israel Bonds, emphasized the bonds’ flawless payment record and the strength of Israel’s economy.
- Bruce Blakeman, Republican gubernatorial candidate, warned the move could fuel antisemitism, linking it to Mayor Mamdani’s stance.
Verbatim Quotes
- “I always said this would be based on financial considerations only, not politics — that’s still my position,” — Mr. Levine
- “They were a very sound investment,” — Scott Stringer
- “A perfect example of a coward: a sellout and a fraud trying to appease the dangerous lunatics on the left driving NY and the country off a cliff. Shame on you,” — Dov Hikind
- “Israel’s economy is strong, and New York’s own pension funds prove it with their Israeli holdings.” — Moshe Davis
Conflicting Reports & Gaps
- State-level holdings are reported as $333 million in one source and $360 million in another, indicating a lack of precise, up-to-date figures.
- While the city’s discretionary authority is cited as $1.3 billion, the exact portion allocated to foreign sovereign debt versus other asset classes is not disclosed.
- The “technical challenges” cited by Levine’s office are not detailed, leaving the specific financial or regulatory obstacles unclear.
What’s Next
Levine’s office indicated that the review of Israeli bonds is “ongoing.” No concrete timeline has been provided for a future reassessment or for any alternative investment actions. The decision may influence broader debates in New York City about the role of political considerations in municipal investment strategies.