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FLA State Pension and Insurance Funds Also At Risk
Posted by: petertribo
Date: 12/04/2007 07:19AM
My bold:
"Dec. 4 (Bloomberg) -- Florida's pension fund owns more than $1 billion of the same downgraded and defaulted debt that sparked a run on a state investment pool for local governments and forced officials to freeze withdrawals....
Like the hundreds of school districts and towns unable to access $14 billion frozen in the Local Government Investment Pool, Florida's 1.1 million current and retired state workers rely on the board's management to boost returns on the funds that pay their pensions. That has left them vulnerable to the same potential for losses. A state-created home insurer and the treasury are also at risk....
Citizens Property Insurance Corp., an insurer created by the state five years ago to provide hurricane coverage to residents in high-risk areas, has half its $10 billion of assets managed by the state board. That includes more than $3 billion of cash moved from private money managers this year in an effort to save $2 million annually.
Frozen Funds
``Citizens was not going from a risky position to a conservative position, but from a conservative position to a more conservative position,'' said John Forney, an adviser to Citizens and managing director for public finance at Raymond James Financial Inc., at an Aug. 2 investment committee meeting.
The insurer pays St. Petersburg, Florida-based Raymond James a $10,000 monthly retainer to provide investment policy advice.
Citizens has $1.9 billion, or almost 20 percent, of its assets frozen in the local government pool, and $583 million of subprime-tainted debt that was bought by the state board, according to the documents obtained by Bloomberg."
http://www.bloomberg.com/apps/news?pid=20601103&sid=aEWz6lIRbqE4&refer=us
What's that mean about "the treasury"?
SIgnificant smoke here. Looks like Abu Dhabi could get a good deal in FLA, any Public Assets ready For Sale?
"Dec. 4 (Bloomberg) -- Florida's pension fund owns more than $1 billion of the same downgraded and defaulted debt that sparked a run on a state investment pool for local governments and forced officials to freeze withdrawals....
Like the hundreds of school districts and towns unable to access $14 billion frozen in the Local Government Investment Pool, Florida's 1.1 million current and retired state workers rely on the board's management to boost returns on the funds that pay their pensions. That has left them vulnerable to the same potential for losses. A state-created home insurer and the treasury are also at risk....
Citizens Property Insurance Corp., an insurer created by the state five years ago to provide hurricane coverage to residents in high-risk areas, has half its $10 billion of assets managed by the state board. That includes more than $3 billion of cash moved from private money managers this year in an effort to save $2 million annually.
Frozen Funds
``Citizens was not going from a risky position to a conservative position, but from a conservative position to a more conservative position,'' said John Forney, an adviser to Citizens and managing director for public finance at Raymond James Financial Inc., at an Aug. 2 investment committee meeting.
The insurer pays St. Petersburg, Florida-based Raymond James a $10,000 monthly retainer to provide investment policy advice.
Citizens has $1.9 billion, or almost 20 percent, of its assets frozen in the local government pool, and $583 million of subprime-tainted debt that was bought by the state board, according to the documents obtained by Bloomberg."
http://www.bloomberg.com/apps/news?pid=20601103&sid=aEWz6lIRbqE4&refer=us
What's that mean about "the treasury"?
SIgnificant smoke here. Looks like Abu Dhabi could get a good deal in FLA, any Public Assets ready For Sale?
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