California to divest from Iran

The Los Angeles Times reports that Governor Schwarzenegger will sign legislation requiring California’s multibillion-dollar government pension funds to divest from the country:

As Iranian President Mahmoud Ahmadinejad paid his controversial visit to New York on Monday, Gov. Arnold Schwarzenegger moved to steal some of the spotlight by announcing that California would sever ties with companies doing business in Iran.

Schwarzenegger, who like Ahmadinejad went to New York to address the United Nations, announced in a written statement after his speech that he would sign legislation requiring California’s multibillion-dollar state pension funds to divest from the country.

The move, pushed by a diverse coalition of activists who argued that the federal government has not done enough to keep multinational corporations out of Iran, puts California at the forefront of a national movement. The bill, AB 221, which passed the Legislature with no opposition, follows the state’s divestment from Sudan last year.

“California has a long history of leadership and doing what’s right with our investment portfolio,” the governor said in his statement. “Last year, I was proud to sign legislation to divest from the Sudan to take a powerful stand against genocide. I look forward to signing legislation to divest from Iran to take an equally powerful stand against terrorism.”

Schwarzenegger announced his decision as politicians from across the country jockeyed to outdo one another in condemning the Iranian president, who is scheduled to address the United Nations today. Ahmadinejad, whom the U.S. government accuses of leading a terrorist regime that arms Iraqi insurgents and is developing nuclear weapons