Chief
02-21-2008, 05:54 PM
http://seattlepi.nwsource.com/local/352135_bonds21.html?source=rss
Local budgets may be hurt by subprime mortgage woes
By ANGELA GALLOWAY
P-I REPORTER
King County officials placed $207 million in investments that were subsequently undermined by the subprime mortgage crisis and expect to see proposals soon for a bailout.
Taxpayers could lose up to $83 million, county officials say, but the state treasurer thinks the county should write off the entire $207 million.
Third-party trustees are expected to offer ideas in March for restructuring four investment programs that defaulted after receiving millions from a county-managed investment pool of 100 county agencies, school districts and small governmental entities such as fire districts, said Ken Guy, King County's finance director.
Although governments could lose money in the deal, "you really have to wait for the restructuring process to be implemented to know if you actually have any actual losses," Guy said. He added, "The pool, at this point in time, has not lost any money whatsoever."
But state Treasurer Mike Murphy disagrees.
Murphy said he is dismayed by how the county is handling the problems facing several of its investments.
"I'm very disappointed in those folks -- with several exclamation points," he said.
On behalf of the pool, the county invested 5 percent of its $4.2 billion portfolio in four programs that failed to pay off in recent months.
Long article but worth the read. It never ceases to amaze me how crooked King County is. If there is some sort of new fiscal irregularity, they will try it...
::)
Local budgets may be hurt by subprime mortgage woes
By ANGELA GALLOWAY
P-I REPORTER
King County officials placed $207 million in investments that were subsequently undermined by the subprime mortgage crisis and expect to see proposals soon for a bailout.
Taxpayers could lose up to $83 million, county officials say, but the state treasurer thinks the county should write off the entire $207 million.
Third-party trustees are expected to offer ideas in March for restructuring four investment programs that defaulted after receiving millions from a county-managed investment pool of 100 county agencies, school districts and small governmental entities such as fire districts, said Ken Guy, King County's finance director.
Although governments could lose money in the deal, "you really have to wait for the restructuring process to be implemented to know if you actually have any actual losses," Guy said. He added, "The pool, at this point in time, has not lost any money whatsoever."
But state Treasurer Mike Murphy disagrees.
Murphy said he is dismayed by how the county is handling the problems facing several of its investments.
"I'm very disappointed in those folks -- with several exclamation points," he said.
On behalf of the pool, the county invested 5 percent of its $4.2 billion portfolio in four programs that failed to pay off in recent months.
Long article but worth the read. It never ceases to amaze me how crooked King County is. If there is some sort of new fiscal irregularity, they will try it...
::)