Court denies schools recovery of $20 million in losses from Lehman Brothers bankruptcy
Original post made on Feb 1, 2013
Read the full story here Web Link posted Friday, February 1, 2013, 10:08 AM
on Feb 1, 2013 at 12:34 pm
How many of the school districts were expecting a hefty return on investment of tax-exempt bond proceeds?
on Feb 1, 2013 at 1:25 pm
Jack, probably none. The problem is that by law the school districts are required to park their money in the county's investment pool. You think the treasurer is an out-of-control gambler who shouldn't be trusted with your money? Too bad. He doesn't even have to return your phone calls, much less keep your powder dry. Portola Valley and Woodside school districts were (relatively) lucky; they'd already spent most of their bond money. The losses were allocated based on the balance at the time of the loss, so districts that had just raised money got hit hardest, and the districts which might have enjoyed appreciably more income over the years got off with less of a haircut. It's akin to buying a mutual fund about to make a big distribution a few days before the ex-dividend date, instead of years before.
on Feb 1, 2013 at 2:10 pm
Bill, you said: "...by law the school districts are required to park their money in the county's investment pool." I've heard that before, but have not seen citations to support that contention. Perhaps you can provide a link.