Unlike Wall Street and the banks, TIAA-CREF is a NY state regulated insurance company. There are rules about its investments. It can't just gamble like a bank or hedge fund. And investing in bankrupt companies if frowned on, even nearly bankrupt companies that don't pay their bills. I do not believe that New York has exemptions for bankrupt or nearly bankrupt Israeli companies. Maybe Ora Coren at TheMarker should do some more homework.
Saudis warns U.S. that 9/11 responsibility law would erode investor confidence in America (Reuters)
from the article: U.S. pension fund giant confirms divestment from Israel firm