Author Archive: Tom Sanzillo

Director of Finance Tom Sanzillo has 30 years of experience in public and private finance, including as a first deputy comptroller of New York State, where he held oversight over a $156 billion pension fund and $200 billion in municipal bond programs.

IEEFA op-ed: Colorado’s pension fund shouldn’t bank on the future of oil and gas

Past performance is no guarantee of future success

By adopting a fossil-free portfolio strategy as has been urged, the Public Employees Retirement Association of Colorado would be doing right by its 560,000 members, ensuring steadier investment returns as the oil and gas industry faces continued uncertainty and decline. In a paper commissioned by the Independent Petroleum Association of America, an anti-divestment consultant and […]

September 18, 2018 Read More →

IEEFA update: Rampant political hiring at PREPA only makes matters worse

Too many ‘empleados de confianza’ at the Puerto Rico Electric Power Authority

The Kobre & Kim report on Puerto Rico’s debt crisis shines a light on the corrosive impact of political hiring at various governmental agencies on the island, including at its public electric utility. By subsuming competent management to the rough and tumble of political interference in government decision-making and operations, Puerto Rico’s leaders have created […]

September 14, 2018 Read More →
IEEFA update: Six real-world rebuttals to divestment naysayers

IEEFA update: Six real-world rebuttals to divestment naysayers

A tendency among academics to overlook the burgeoning risk in fossil fuel holdings

Academic arguments against divesting from the oil and gas sector are just that—academic—and those who make them ignore the underperformance of the sector and the array of mounting risks it faces. The principal objections of divestment detractors—that divestment will either cause institutional investment funds to lose money or undermine their ability to meet their objectives—are […]

and September 12, 2018 Read More →

IEEFA update: Is a pay-to-play racket driving Puerto Rico to ruin?

Who got picked to be bond advisers, why, and how much were they compensated?

The Kobre & Kim debt investigation report on Puerto Rico that we wrote about earlier this week establishes a framework for bondholders (and the government) to bring claims against the financial advice industry that participated in the island’s bankruptcy. But it has important omissions. The report leaves out any mention of how the underwriters, bond […]

September 7, 2018 Read More →

IEEFA update: Accountability for the banks, law firms, accountants and credit agencies that orchestrated Puerto Rico’s $72 billion debt crisis

An investigative report names names: Companies that profited from an island's fiscal despair are worth over $2 trillion

An army of high-priced talent from some of the world’s most prestigious law firms, accounting companies, investment banks and credit agencies provided the advice and counsel to the Puerto Rican government that paved the way to the commonwealth’s $72 billion debt problem. The same lawyers, accountants, bankers and credit-rating experts continue to have the ear […]

September 4, 2018 Read More →
IEEFA update: Divestment 101

IEEFA update: Divestment 101

A 10-point FAQ primer on a new mindset around energy sector holdings

The fast-moving evolution of the energy sector is changing investor minds and altering capital market flows. This shift raises as many questions about where things are going as it does about the status quo. A report we published earlier this summer—“The Financial Case for Fossil Fuel Divestment”—takes a stab at addressing the topic practically and […]

IEEFA update: The investment rationale for fossil fuels falls apart

An outdated mindset that no longer lives up to its hype

For decades, the fossil fuel sector literally fuelled the global economy and powered the world’s investment markets. This is no longer the case. The long-standing and now outdated investment thesis around fossil fuels—that such holdings would make large and reliable annual contributions to institutional funds—has crumbled. The sector now lags the broader market, and the […]

IEEFA op-ed: Who really owes Puerto Rico’s bondholders—and how much?

Investigation points to negligence and wrongdoing in both the public and private sector

One thing that jumps out from the Puerto Rico Financial Oversight Management Board’s (FOMB) recent report on the island’s debt quagmire is the backward nature of the process by which the powers-that-be are determining how much Puerto Rico’s residents will be on the hook for. The FOMB report, to its credit, lays out a history […]

August 24, 2018 Read More →

IEEFA op-ed: Plan to turn to imported natural gas will cost Puerto Rico dearly

More ratepayer-subsidized profits for companies well-represented in Congress

A series of announcements over the past couple of weeks by Puerto Rican officials signals a new—and misguided—push for greater reliance on imported natural gas for electricity production. If these plans come to fruition, they will saddle Puerto Rico with far too much expensive natural gas-generated power while crowding out cheaper renewable energy. The plan, […]

IEEFA update: U.S.-Canada trade tensions could scuttle Kinder Morgan sale of Trans Mountain Pipeline

IEEFA update: U.S.-Canada trade tensions could scuttle Kinder Morgan sale of Trans Mountain Pipeline

Political hurdles remain on government’s buyout of faltering project

The fate of the unfinished Trans Mountain Pipeline in western Canada may be determined 3,000 miles away — in Washington. The stalled project, designed to link oil-sands fields in Alberta with West Coast ports, would become nationalized under the terms of a deal announced in June that would have the Canadian government buy the pipeline […]