He detailed how the state’s public pension fund has been harmed by investments in companies recently accused of wrongdoing, saying that Massachusetts lost $24 million on deflated Enron stock, and $25.1 from WorldCom bonds.

“This pattern of loss effects the security of our pension system,” Reich said. “This effects not only jobs but also nest eggs."

But he said that state leaders can use the government’s investment in companies to make sure they comply with proper standards.

“We are not without leverage in Massachusetts,” Reich said. “We can take the lead.”

After the speech, students and local media asked questions of Reich. One reporter told him that both Romney, as well as Democratic gubernatorial challenger and State Treasurer Shannon P. O’Brien were holding press conferences that afternoon on the same topic.

But Reich questioned whether the two, as well as President Bush, would actually address the problem adequately.

“The real question is the quality of the solutions,” Reich said. “I’m worried we’ll have more words, and very little action.”

—Staff writer Imtiyaz H. Delawala contributed to the reporting of this story.

—Staff writer Alexander J. Blenkinsopp can be reached at blenkins@fas.harvard.edu.