State Audit Widens To Pension Fund (Florida)

Source: Tampa Tribune

December 13, 2007

TALLAHASSEE - Auditors investigating last month's run on an investment fund for local governments need to scrutinize Florida's $137 billion pension fund as well, the fund's top administrator said Wednesday.

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At the behest of state Chief Financial Officer Alex Sink, the State Board of Administration's audit committee met Wednesday to map out a plan for probing how and why downgraded mortgage-backed securities wound up in the local government pool's investment portfolio, which the SBA oversees. Revelations about the risky investments sparked panic last month among investors, who withdrew $10 billion from the now-$12.2 billion fund over the course of two weeks. ..... Among other things, the SBA's auditors will investigate the ratings of downgraded assets at the time of their purchase by the state, whether fund managers violated SBA investment policy, whether that policy had changed and whether anyone exerted undue pressure to influence investments.

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Martin said he hopes the auditors look closely at political pressures that may have resulted in fund managers making risky investments. He noted that, as was reported recently on Forbes.com, Lehman Brothers sold much of the risky commercial paper to Florida, and also employs former Gov. Jeb Bush as a consultant. As governor, Bush was a sitting trustee of the SBA.

"Did the SBA go political? That's a very serious question," Martin said.

Lehman Brothers did not respond to a call seeking comment.

Read more: http://www2.tbo.com/content/2007/dec/13/me-state-audit-widens-to-pension-fund/

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Anyone seen Jeb lately?

Florida Retirement System loses $328 million after Enron collapse (Jeb Bush, trustee), March 3, 2002


Janet Rehnquist under GAO investigation for delaying audit of FL's pension fund at Jeb's request, March 5, 2003


2004: FL to invest $1 Billion of employee pension fund in risky venture capital (Biotech), April 17, 2004


January, 2007: Jeb Bush leaves the Governor's Mansion


Jeb Bush joins board at Lehman, August 23, 2007


$8B pulled from state investment pool (Florida), November 29, 2007


Forbes: Jeb Bush involvement with Lehman raises questions in Florida investment fund debacle, December 1, 2007

out of their hard working Pensions

Jeb is definitely at the heart of this