By Menachem Wecker, JNS
The reversal “sends an unfortunate signal at a time of rising antisemitism and sustained efforts to isolate Israel economically,” Evan R. Bernstein, CEO of B’nai B’rith International, told JNS.
On Monday, Israeli President Isaac Herzog awarded a Presidential Medal of Honor to Israel Bonds in a ceremony in Jerusalem, during which he praised its “outstanding work” that “serves as a solid confirmation that despite attempts to isolate us, the people of Israel never stand alone.”
Two days later, on Wednesday, Mark Levine, New York City comptroller, told the New York Times that the city will not invest in Israel Bonds, citing concerns about their investment strength.
William Daroff, CEO of the Conference of Presidents of Major American Jewish Organizations, an umbrella group that represents about 50 Jewish groups, told JNS that “Mark Levine’s decision is indefensible and repudiates the clear commitment he made to voters.”
“Israel Bonds began in 1951. Israel’s record since then is unbroken, with not one missed payment of principal or interest,” Daroff said. “Investors purchased more than $8.5 billion in Israel Bonds since Oct. 7, 2023, underscoring the strength of continued confidence in Israel and the failure of efforts to isolate it.”
“New York City should reverse course and restore its investment,” he told JNS.
Evan R. Bernstein, CEO of B’nai B’rith International, told JNS that the nonprofit is “deeply disappointed” with Levine’s decision “to reverse his clear campaign commitment and decline to reinvest New York City pension funds in Israel Bonds.”
“Israel has an unbroken record of meeting every principal and interest payment on its bonds since 1951, including those held by the city for nearly half a century,” Bernstein said. “Other major U.S. public funds continue to invest in them as sound, diversified holdings.”
The reversal, which New York City Mayor Zohran Mamdani told reporters that he welcomes, “sends an unfortunate signal at a time of rising antisemitism and sustained efforts to isolate Israel economically,” Bernstein said.
“Framing the choice solely as a narrow financial calculation does not change the larger message it delivers,” he told JNS. “We urge Comptroller Levine to reconsider and to restore this longstanding, responsible investment.”
Ofir Akunis, consul general of Israel in New York, stated that Levine's "misguided decision not to renew New York City’s investments in Israel Bonds is an economically damaging decision that harms New York City and its residents."
“Israel’s economy continues to thrive and demonstrate remarkable strength, driven by the spirit of innovation and resilience that defines the Israeli people and society,” Akunis stated. “The fact that Mayor Mamdani welcomed this decision speaks volumes."
The Israeli envoy called the city's decision "a victory for those who hate Israel, oppose Zionism and support the BDS movement," or the movement to boycott the Jewish state.
"This decision will only further fuel antisemitism in New York City, which has already reached unprecedented levels under Mayor Mamdani’s leadership,” Akunis stated.
Daniel Friedman, a rabbi and political science professor at Touro University, told JNS that "Israel has never enjoyed the luxury of geopolitical tranquility."
"It has faced existential threats, terrorism and repeated wars throughout its history, yet it has never defaulted on its Israel Bonds. What, then, has changed?" the professor said. "One significant development is the growing political campaign to delegitimize Israel and discourage investment in its economy. Mayor Mamdani has publicly opposed the city's purchase of Israel Bonds. Such campaigns undermine investor confidence and increase borrowing costs."
That means, Friedman told JNS, that "political hostility is largely responsible for making Israeli investments less attractive, and so it's troubling when public officials invoke those deteriorating investment conditions as justification for further withdrawal."
At the ceremony in Jerusalem on Monday, Herzog said that “the proceeds from Israel bonds have been used to build and develop our economy, to promote advancements in science and technology and to provide a vital network of support during times of crisis.”
“This has never been more evident than during the past few years of uncertainty, loss and courage, here in Israel, since Oct. 7,” the Israeli president said. “The outstanding work by Israel Bonds raised $1 billion of capital in the first month following Oct. 7, and more than $8.5 billion since that dark day.”
“To us, this serves as a solid confirmation that despite attempts to isolate us, the people of Israel never stand alone,” he said. “In fact, over the past 75 years, more than $58 billion worth of Israel bonds have been purchased around the world, solidifying Israel’s long-term standing in the global market and demonstrating the trust investors have in Israel.”
“We have repaid that trust, never once defaulting, as I am certain we will continue to do,” he added.
On Thursday morning, Levine stated that anybody saying that "I am giving up on Israel is trying to turn the ordinary re-balancing and management of a pension portfolio into a political issue."
"The economic relationship between New York City and Israel is deeply important, bringing substantial investment into our city and generating strong returns for our pension funds," the Jewish comptroller stated. "Our funds invest around the world, including more than $285 million in Israel, primarily in equities. Israel remains one of the world’s most dynamic and innovative economies, and those holdings remain an important part of our portfolio."
The city's pension fund investments show that the Big Apple isn't boycotting the Jewish state, according to Levine.
"I expressed my deep appreciation for the Israel-New York City economic relationship during my campaign for comptroller, and that appreciation remains unchanged. I also pledged to make every investment decision free of politics, based solely on its financial merits and my fiduciary responsibility to 750,000 current and future retirees," he stated. "We apply those same principles to Israel Bonds."
A "number of challenges, including constraints related to a rules change on our short-term investment desk made by the previous comptroller, prevent us from making direct purchases," Levine stated. "We continue to evaluate this investment, as we do all potential investments."
Levine's predecessor, Brad Lander, who is the Democratic nominee for a safe New York seat in Congress, has accused Israel of "genocide" and after losing the mayoral race to Mamdani, has been one of the anti-Israel mayor's most prominent Jewish supporters.
"Our commitment to investing in Israel remains clear in the hundreds of millions of dollars in Israeli equities that our pension funds continue to hold," Levine stated. "Like many Jewish New Yorkers, my deep personal connection to Israel is a part of who I am. It will not change."
After Levine released the statement, the American Jewish Committee said that it welcomed Levine "expressing his ongoing commitment to maintaining the $285 million investments in Israel by the city’s pension funds and for reaffirming the indelible economic ties between New York and Israel."
"We thank comptroller Levine for emphasizing both the importance of New York’s long and abiding connection to Israel and that Israel-related investments have provided impressive returns for the city funds he is responsible for protecting," the AJC said. "We also appreciate his reaffirmation of the city pension funds' opposition to BDS."
"At the same time, we strongly encourage the comptroller to take all measures to evaluate any potential changes made by his predecessor, in order to allow for direct purchases of Israel Bonds to continue," it said. "This follows a trend of over a half-century of good returns for the city and responsible financial stewardship."
