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Legislative Updates

Legislative Update No. 115, Session 80
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

November 7, 2008

TRS Fiduciary Counsel Nominee Withdraws

The Teacher Retirement System of Texas (TRS) released a statement on the withdraw of Cooley, Godward, and Kronish Law firm for consideration as the fund's fiduciary counsel. This issue garnered the attention of many legislators, including State Senator Robert Duncan who questioned the firm's ability to advise TRS in instances that may involve potential conflicts of interests between TRS and other companies represented by Cooley, Godward, and Kronish. The TRS statement is provided below.

"Today, the Board of Trustees of the Texas Teacher's Retirement System (TRS) has accepted the withdrawal of the Cooley Godward Kronish Law Firm for consideration as fiduciary counsel. TRS was informed of the decision by Mr. Roel Campos, a partner in the firm who would have been primary fiduciary counsel. Mr. Campos is one of the most highly respected governance and ethics experts in the country. His two terms on the Securities and Exchange Commission (SEC) and his extensive experience as a federal prosecutor and SEC Commissioner made him a logical choice for the board. The TRS Trustees felt honored that such a highly regarded attorney wished to serve in this capacity for TRS.

The board began its comprehensive review and search for fiduciary counsel in March of this year. Following an extensive search, the Board reviewed 10 highly qualified candidates from around the country. The candidate pool was narrowed to four, including the Cooley Godward Kronish Law Firm. At its July meeting, the board voted by a majority to hire the Cooley Law Firm, and Mr. Campos in particular, as the fiduciary counsel for the TRS Trustees.

However, during the contract review process, discussions occurred on the issue of how to deal with prospective conflicts, including future situations in which TRS may seek to invest in one of Cooley's many fund clients. Mr. Campos and the Cooley firm, after much thought, have determined that it does not serve the best interests of TRS to prolong the discussion. Accordingly, placing TRS and the members and teachers first, Cooley Godward Kronish has chosen to withdraw from TRS's consideration as fiduciary counsel.

In light of this, the Board will reconsider fiduciary counsel at its November meeting."

TRTA will continue to update you on this issue as it develops. As always, thank you for your support and dedication to the Texas Retired Teachers Association (TRTA).

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