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State investment chief considers privatizing investment pool

Source: By Paige St. John, Tallahassee Democrat (FL), December 19, 2007


As an audit committee attempts to unravel how Florida became so heavily invested in subprime-tainted securities, the state's new investment chief is considering leaving such future decisions to professionals.

Florida already seeks to privatize management of what remains of its $12 billion local government investment pool, after revelations it contained defaulted securities caused its near collapse.

......... Private management has already come at a cost -- the fund's new interim managers charge up to $39 for every $10,000 invested, compared to $1.50 formerly charged by the state.