MOSERS divests stock in Arab Bank

Steelman, a member of the MOSERS board, has been outspoken about Arab Bank holdings in the MOSERS portfolio.

In June, MOSERS defeated Steelman’s motion to divest $87,000 in stock in Arab Bank. Then in late September, two weeks before the system’s board was scheduled to vote on forcing the sale of stock, MOSERS is going back on its initial decision.

“I am very pleased that MOSERS has finally gotten rid of this stock,” Steelman said in a news release.

The MOSERS board also is expected to vote on a private vendor that will screen stocks to make sure they are not tied to companies involved with terrorist activities.

MOSERS passed a resolution to implement the screening policy in August.

“Our tax dollars should never be invested in companies or in countries that support terrorism,” Steelman said. “Selling the Arab Bank stock is the first step. Ensuring a policy that prevents such investments in the future is the next step.”

Arab Bank has been the target of an investigation by the U.S. Treasury Department since January. In August, the department slapped a $24 million fine on the bank for not enforcing laws to keep its transfers out of terrorists’ hands. Other allegations claim Arab Bank has provided more than $20 million in funding to terrorist groups.

Additionally, the bank is the subject of more than $1 billion in civil suits brought by family members of terrorist suicide bomb victims, the first being the family of Marine John Linde Jr., of Washington, who was killed by a terrorist bomb while guarding diplomats in Gaza. The suits allege that Arab Bank had established special accounts to pay money to the families of “martyrs” who had carried out suicide bombings.

Ads in Arab newspapers reportedly directed family members to bring documents to local branches to receive the “martyr” funds.