WASHINGTON -- The chairman of the House Banking Committee urged the nation's governors yesterday to warn state pension funds, universities, school districts, and other public entities about the risks of investing in derivatives.

"Given that our nation's public institutions are sustained by moneys collected from hard-working taxpayers, it is imperative that the managers of the institutions be warned about the risks posed by derivatives investments," Rep. Henry Gonzalez said in a letter sent to Vermont Gov. Howard Dean, chairman of the National Governors' Association.

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