The Labor Department said it has investigated several situations involving alleged improper derivatives investments by pension fund managers.

"Substantial monetary recoveries have been, or soon will be, achieved in two of these cases while another case is ongoing," said Labor Secretary Robert Reich in an Oct. 15 letter to Rep. Henry Gonzalez, a Democrat from Texas.

Reich said that nothing his department has seen to date suggests widespread investment of pension funds in inappropriately risky derivatives.

Gonzalez had asked Reich to provide further details about the information that the Labor Department receives regarding pension investments in derivatives.

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