Local Governments Still Waiting
December 18th, 2007 by Mike VasilindaLocal Governments with money in the state fund that was frozen two weeks ago will have to wait awhile longer before they can access their cash. The Local Government Investment Pool was frozen after news of bad investments caused a run on the fund. Withdrawals were limited to two million dollars per investor. General Bob Milligan, the interim head of the State Board of Investment says he expects the fund to eventually be profitable again.
“It’ll take a while to see what kind of return we get on these investments. Countrywide, for example, comes due, I think it’s in March, and I anticipate we’ll get full recovery from that element, from that product that’s in pool B,” Milligan said. “I would anticipate that none of them will go to zero.”
Milligan expects local governments with money in the fund will get a chance to withdraw more of it sometime in the first quarter of next year.
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