The capital markets reacted favorably Monday to news that the U.S. Department of Justice allowed Rhode Island communities East Providence and North Providence to use some of their shares of a $500 million federal settlement in 2011 with online search engine Google Inc. to replenish police pension funds.
“It’s a nice kind of thing to fall out of the sky. I ran some of the numbers and it’s good for both of them,” said Alan Schankel, managing director for Janney Capital Markets in Philadelphia. “It puts North Providence even, although they still have a little liability on the fire side. In East Providence, which has a combined fire and police pension, it gets it to about two-thirds.”