Who has what at risk in frozen state fund

The State Board of Administration faces a very thorny problem in deciding what to do with its state and local government fund. Calling a temporary halt to withdrawals has investors screaming--and who can blame them--but I haven't heard any real alternatives to a. a state bailout or b. liquidation at a loss. You can bet there will be lots of political pressure in favor of a bailout, which could take the form of a subsidy or a loan or loan guarantee. In addition to the cities, counties and universities that each have millions at stage, Citizens Property Insurance Corp. has $2-billion invested in the fund. Here is a list of all investors and how much money they have in the fund. Here's what was in the portfolio at the end of October. You can listen to yesterday's meeting or read the transcript here.

Here's some of today's coverage: St Petersburg Times, New York Times, Tallahassee Democrat.

Saturday update: St. Petersburg Times, Bloomberg

Comments

[Walt]

Thank you, Ms. Huntley, for providing helpful information and useful links. I learned much reading the Board meeting transcript.

Shifting this loss ("a wonderful diversifier")onto the backs of Florida's retired government workers is morally repugnant. Shame on you Coleman Stipanovich!

Time for the Board to exercise its fiduciary duty and reject this bad idea.

[Jonathan Roy]

It's a bummer to see this sort of hysteria spread more and more.

[WQW]

That's alot of dough. Is there a federal law the required subprime loans to be made to the poor, and, in effect, created this problem? Typical--all things from politicians and legislatures. Why not disband congress for 10 years and let the people get back to business and let all lobbyists struggle with doing more productive work.