Florida- Just First to Face National Run on the Bank

[Orwellian_Ghost]

Dec. 4 (Bloomberg) -- Florida officials are going to meet today to talk about the crisis in the state's Local Government Investment Pool. I don't know what they are going to talk about, but I know what they had better decide.

The State Board of Administration runs the pool, and its three trustees, Governor Charlie Crist, Chief Financial Officer Alex Sink and Attorney General Bill McCollum, had better decide that it's in the best interest of the state to ensure that all of the pool participants get their money back.

The investment pool, which contained $27 billion this summer, now has $14 billion, the result of withdrawals by municipalities with keenly developed senses of self- preservation. On Nov. 29 the board told the remaining participants they couldn't withdraw any more money from the pool.

The pool, which is where most of the state's municipalities put their money when they are not using it, owns $1.5 billion in securities that have been downgraded or defaulted as a result of the subprime market collapse.

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http://www.bloomberg.com/apps/news?pid=20601039&sid=a6Ne4_lh1TS4&refer=home

[madfloridian]

1. Here's a link to the CF0 homepage...Alex Sink.

There is some discussion there. I deleted my email with the links, and these topics are without permalinks. She sounds like she has been on top of it. I sure hope so.

http://www.myfloridacfo.com/PressOffice/Newsletter/