The Hot Story: Where was Jeb!?
December 6, 2007 at 10:26 am by Wayne Garcia
The Trib today weighs in on the exposure that Hillsborough County and the Hillsborough school system face in the declining lack of confidence in the state investment fund. The two governments have a combined $1.4 billion deep into the fund, which has a large exposure in mortgage-backed investments. A run on the fund by nervous local goverments was halted last week before the two governments could make their withdrawal:
For 25 years, the SBA fund has been a place where local governments sent large pools of their money and got even more in return. Recently, concerns about mortgage-backed securities led many governments to withdraw their shares from the fund. The governments removed $10 billion within two weeks, prompting state officials to halt withdrawals Nov. 29.
Transactions will be allowed again today, although state leaders on Tuesday placed a cap on how much governments can remove.
While 86 percent of the $14 billion in investments is considered safe, neither state nor local leaders yet can say how much, if anything, they will lose from the remaining, tainted 14 percent of investments.
One observation: a snarky “once again Hillsborough is behind the curve,” and a question: “Isn’t this mess something we can lay at the feet of our former governor, Jeb!, please please please?”
Forbes wonders that as well. In a story headlined “Where was Jeb?” the business mag points out:
A majority of this paper was sold to SBA by Lehman Brothers. Bush, as the state’s top elected official, served on a three-member board that oversaw the SBA until he retired as governor in January. In August, Bush was hired as a consultant to the bank. Lehman spokesperson Kerrie Cohen, speaking on behalf of Bush, said they had no comment and would not say when the bank had sold Florida the paper. SBA did not return calls.
While SBA wouldn’t confirm, Bloomberg reported the amount of debt in default is around $900 million.
Was Jeb! following in the financial footsteps of brother Neil?
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