In a letter to state and local officials, the human rights organization DAWN warned on Friday that any investment in Israeli sovereign debt by New York City would violate local and international law.<\/p>\n
The 26-page letter<\/a> \u2014 directed to New York Mayor Zohran Mamdani, Gov. Kathy Hochul, and the state and city comptrollers \u2014 took aim at Israeli bonds, a financial instrument that invests in the Israeli government for a set period and then is paid back with interest.<\/p>\n \u201cNew York is using taxpayer money to finance a military the entire world has watched commit war crimes.\u201d<\/p>\n Israeli bonds have emerged as a crucial source of funding for the Israeli government, with money from bond sales flowing into the country\u2019s coffers and allowing it to continue its genocidal campaign in Gaza<\/a> and displacement of Palestinians in the West Bank.<\/p>\n \u201cThere\u2019s no complicated analysis needed here: New York is using taxpayer money to finance a military the entire world has watched commit war crimes and crimes against humanity for years,\u201d said Raed Jarrar, DAWN\u2019s advocacy director. (Mamdani, City Comptroller Mark Levine, and the other elected officials named in the letter did not immediately respond to a request for comment Friday.)<\/p>\n On top of the financial risk of holding Israeli debt and the moral imperative of ceasing to fund the Israeli government, divesting from Israel bonds would simply put New York more in line with the opinions of its own citizens, said Michael Schaeffer Omer-Man, DAWN\u2019s director for Israel and Palestine.<\/p>\n \u201cWhere you put your money \u2014 that means something,\u201d Schaeffer Omer-Man told The Intercept. \u201cWe\u2019ve seen a massive shift in public opinion over the past few years as a result of the Gaza war. The political class hasn\u2019t necessarily caught up yet, but support for Palestinians and disapproval for Israel\u2019s behavior, actions, and policies is at an all-time high.\u201d<\/p>\n New York State\u2019s Common Retirement Fund held $352 million worth of Israel bonds as of March 2024, making it one of the largest holdings in the U.S., according to DAWN. And while former City Comptroller Brad Lander allowed the bonds held in city-controlled portfolios to lapse in 2024 \u2014 earning DAWN\u2019s praise \u2014 the city\u2019s new comptroller, Levine, has pledged to reinvest.<\/p>\n \u201cBrad Lander understood this and divested,\u201d said Jarrar. \u201cMark Levine\u2019s promise to reinvest is a promise to keep funding Israel\u2019s war machine with New Yorkers\u2019 money.\u201d<\/p>\n DAWN pledged to explore legal action against the state for its investment should it decline to divest in the bonds, as well as against the city should Levine\u2019s plan move forward.<\/p>\n Levine\u2019s announcement of his intent to purchase Israeli government bonds put him at odds with Mamdani, a longtime critic of Israel whose campaign did not shy away from a continued support for Palestinians despite continuous attacks smearing him<\/a> as an antisemite<\/a>.<\/p>\n \u201cThere\u2019s a potential conflict coming up,\u201d said Schaeffer Olmer-Man. \u201cI hope that Mamdani holds his ground and exerts whatever influence he has to ensure these imprudent and arguably illegal investments do not renew.\u201d<\/p>\n We\u2019re independent of corporate interests \u2014 and powered by members. Join us. <\/p>\n Join Our Newsletter <\/p>\n Thank You For Joining! <\/p>\n \n Original reporting. Fearless journalism. Delivered to you. <\/p>\n Will you take the next step to support our independent journalism by becoming a member of The Intercept?\n <\/p>\n By signing up, I agree to receive emails from The Intercept and to the Privacy Policy<\/a> and Terms of Use<\/a>.<\/p>\n So far, Mamdani has held fast and signaled his opposition to Levine\u2019s plan.<\/p>\n \u201cI\u2019ve made clear my position, which is that I don\u2019t think that we should purchase Israel bonds,\u201d Mamdani told reporters<\/a> in an unrelated press conference on January 21. \u201cWe don\u2019t purchase bonds for any other sovereign nation\u2019s debt, and the comptroller has also made his position clear, and I continue to stand by mine.\u201d<\/p>\n \u201cYou appear to be asking that the City\u2019s pension funds treat Israel better than all other countries.\u201d<\/p>\n The standoff between the mayor and comptroller is an exact reversal of the dynamic that existed between former Mayor Eric Adams, a staunch supporter of Israel and bonds backer, and Lander, the former comptroller who allowed the city\u2019s investment to lapse<\/a>. At the time, Lander \u2014 a self-professed liberal Zionist who has been outspoken in his criticism of the genocide in Gaza<\/a> \u2014 said he as simply doing his job as the steward of the city\u2019s investments.<\/p>\n \u201cWe consulted our guidelines and made the prudent decision to follow them, and therefore not to continue investing in the sovereign debt of just one country,\u201d said Lander in a July 13 letter <\/a>penned in response to an ally of Adams critical of the move to wind down the city\u2019s bonds position. \u201cYou appear to be asking that the City\u2019s pension funds treat Israel better than all other countries. That would also be politically motivated, and inconsistent with fiduciary duty.\u201d<\/p>\n
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