(CHICAGO) — Melissa Conyears-Ervin is getting some pushback after saying Thursday her office will no longer invest the city’s money in U.S. Treasury Bonds.
Ald. Ray Lopez (15th) was the first to raise issue with her proposal and went back and forth with her for five minutes Thursday.
Conyears-Ervin says she is protesting what she calls the “authoritarian regime” of President Donald Trump. She didn’t answer when asked about the security of other investments outside of Treasury Bonds.
Later in the day, Cook County Commissioner Sean M. Morrison penned a letter to the mayor and expressed his concern and pointed out the safety and security of Treasury Bonds writing in part, “U.S. Treasuries are the safest, most liquid instruments available.” A copy of the letter is below.
Some are calling it a political stunt as Conyears-Ervin is one of 13 candidates running to replace retiring Congressman Danny Davis.
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Letter to Mayor Brandon Johnson and City Council of Chicago Regarding City Treasurer’s Proposal to Divest from U.S. Treasuries
Mayor Brandon Johnson
City of Chicago
121 N. LaSalle Street, Suite 507
Chicago, IL 60602
RE: Chicago City Treasurer’s Proposal to Divest from U.S. Treasuries
Mayor Brandon Johnson and Members of the City Council of Chicago:
As a Cook County Commissioner who has spent the last decade scrutinizing budgets, debt structures, liquidity needs, and fiscal policy across multiple levels of government, I feel compelled to raise a serious concern regarding the City Treasurer’s public announcement that the City of Chicago will cease investing in U.S. Treasury securities as a form of political protest.
Treasurer Conyears-Ervin’s statement that she will divest from Treasuries to “stop bankrolling the authoritarian Trump regime” is not a financial strategy, it is an ideological gesture. And in this case, ideology comes at a very real and very costly price for the taxpayers of Chicago.
1. Using short-term liquidity investments as a political weapon is reckless.
U.S. Treasuries are the safest, most liquid instruments available. Cities, including Chicago, rely on them to meet payroll, stabilize cash flow, safeguard pension obligations, and maintain operational continuity. Diverting from Treasuries is not just unusual; it undermines the core fiduciary duty of protecting public funds.
When you remove politics from this decision, the professional assessment is simple: Treasuries exist to ensure safety, liquidity, and stability, not to serve as political leverage.
2. This move may already have cost Chicago millions in missed gains.
Over the last year, U.S. Treasuries have experienced a significant upswing. The City Treasurer’s own reports indicate record-breaking investment earnings of more than $370 million last year, with projections approaching $400 million this year.
Pulling money away from treasuries during a market upswing is the financial equivalent of selling your safest assets at the very moment they’re producing strong returns, all to make a political point.
That is not stewardship. That is negligence.
3. The City still has no clear replacement strategy.
Treasurer Conyears-Ervin publicly claimed, “There are other ways for us to invest… we will get the same rate of return.”
But she has provided no explanation for:
• what those alternatives are,
• whether they meet the City’s liquidity requirements,
• how risk and volatility will be managed,
• or how taxpayers will be protected.
Public finance cannot operate on slogans. You need a risk-adjusted, transparent plan, and taxpayers deserve to see it.
4. Politicizing treasury management undermines confidence when Chicago can least afford it.
Chicago’s financial position is already stressed by:
• massive pension obligations,
• high debt servicing costs,
• budget gaps,
• and declining investor confidence.
Announcing that the City will abandon the safest financial instruments in the world “to stick it to Donald Trump” sends exactly the wrong message to the markets, the rating agencies, and the residents who depend on responsible leadership.
This is not how a major American city manages billions in cash assets.
My message to the Mayor and City Council.
This issue demands immediate oversight and course correction.
I strongly urge you to:
1. Request a full, public financial impact analysis on divesting from Treasuries, including foregone yield, increased risk exposure, and liquidity implications.
2. Require the City Treasurer to disclose the proposed alternative investment vehicles and certify whether they meet the standards of safety, liquidity, and return.
3. Reaffirm that investment policy must be insulated from partisan motivations, no matter who occupies the White House.
4. Re-establish a professional, fiduciary-first investment framework, not a politicized one.
This is not about partisan politics. This is about fiduciary responsibility. And right now, Chicago taxpayers are the ones who stand to lose.
As a County official who consistently advocates for responsible fiscal policy, I urge you to take this matter seriously and act swiftly to protect the financial stability of the City of Chicago and all those who rely upon it.
Respectfully,
Commissioner Sean M. Morrison
Cook County Board of Commissioners – 17th District
