US regulators have sanctioned the city of San Diego for failing to disclose underfunding of its pension scheme during a bond sale. The pension fund recently lost more than $100m (€78m) due to investments in collapsed hedge fund Amaranth Advisors.

The SEC alleged that in five municipal offerings in 2002 and 2003 the city failed to disclose that the unfunded liability to its pension plan was projected to increase from $284m at the beginning of 2002 to an estimated $2bn by 2009. The city also allegedly made misleading statements to the rating agencies.