Tuesday, December 04, 2007

"Suspect Debt" All Over Florida

Lots of little pieces of the Big Shitpile down there. Bloomberg (12.04.07):
"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.

The State Board of Administration, manager of $37 billion in short-term assets, including the pool, also oversees the $138 billion Florida Retirement System.

Florida's Pension Fund Holds Same 'Suspect' Debt as Frozen Pool

"The board purchased $3.3 billion of debt whose top ratings were reduced following the collapse of the subprime mortgage market, according to documents obtained by Bloomberg News through an open records request."

Ahhh, but the best is yet to come. "'These were highly inappropriate investments for taxpayers' money,' said Joseph Mason, a finance professor at Drexel University in Philadelphia. 'This is the tip of the iceberg for pension funds. We know the paper is sitting there. There are substantial subprime-related losses that haven't shown up yet.'"

Give 'em time. They'll come around.



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