Florida suspends withdrawals from state investment fund

Discussion in 'Wall St. News' started by S2007S, Nov 29, 2007.

  1. S2007S


    Florida suspends withdrawals from state investment fund

    Dan Tracy and Aaron Deslatte | Sentinel Staff Writers
    1:06 PM EST, November 29, 2007

    Florida today suspended withdrawals from a state investment fund after cities, counties and school boards -- fearful of the fund's financial stability -- withdrew $3.5 billion in just one day.

    The State Board of Administration -- the governor, attorney general and chief financial officers -- voted unanimously to at least temporarily halt a run on the fund, which has reported withdrawls totalling $10 billion in the past several weeks. That's more than one-third of the fund's assets of $28 billion.

    Local governments fear they could lose their money because the state invested it in funds backed by loans to homeowners with questionable credit -- the same loans that have triggered an international credit crunch.

    Governments and agencies typically take money intended to pay for such basics as teacher salaries or road repairs and invest it in the short-term state fund so they earn interest before the bills come due.

    Alarmed local officials said the move by the SBA could jeopardize local governments' payrolls, if they are not able to take money out of the fund to pay employees.

    "We needed leadership today, and we didn't get it," said Bob Inzer, chief financial officer for Leon County.
  2. S2007S


    Question, why would any state risk billions of dollars in funds backed by loans to homeowners with questionable credit.

    WHY WHY WHY...
  3. Because wall street found a way to turn crap into AAA paper. thats why
  4. Because nothing is bought on Wall St. It's sold. The salesmen got huge credits, the fiduciarys at the fund were enticed by the yield, or perhaps, and it will be found out at the coming fed investigation, bribed. :eek:

    Shittier (word? shittier), the more shitty the credit, the higher the credit. Real simple. Besides, what can happen, it's AAA?

    This goes up the chain brother. It's too friggin' big. Can you imagine having thetrust of a State, and the money they run, and you can't do it right? The fees are tremendous to begin with, but they have to have more.

    You'll be reading about this for the next three years.
  5. Yes, AAA = Wall Street Fraud. I wonder when the perp walks will start.
  6. bellman


    Why is this story buried at the bottom of the news sources? I wouldn't have heard this story if you hadn't posted it. Lehman is on CNBC right now, but nothing about the run on state funds in Florida and suspension of withdrawals.
  7. Yeah, "High Yield" AAA paper, too. You'd think they'd know better.
  8. S2007S


    I first heard of this story on November 15th, it came to my attention again today after I researched it, it is getting serious. As soon as you think it can go no further it stretches out into something new.
  9. I am getting that sick feel inside. My mom's was a teacher, in CA, and get a nice hard earned retirement from it. When I heard about Citi bank I called my credit union in CA ( which I have alot of money at ) and demanded updated financial data which looks ok, but I am having my buddy whom is a financial analyst look at it. Especially after reading in the other thread about just how FDIC and SIPC coverage works it makes me a bit concerned.
  10. If you think about the is whole credit problem from a common sense standpoint it makes sense. The US, and the rest of the world, uses fiat money which is nothing more than a promise to repay. If we collectively lose faith in that promise we have meltdown.

    Gentle Ben is practicing his speech right now. C'mon Ben don't stutter like I have seen you do before. I would not want to be in his shoes. :eek:
    #10     Nov 29, 2007