This report shows the gravity of the current subprime crisis, which has effectively shut down a $14 billion investment pool relied on by Florida towns and school districts for their routine expenditures. Apparently, 14% of the fund was placed in troubled investments, causing local governments to try to get their money out at the same time last month, as the fund’s assets declined in value by 48%. The “run on the bank” has caused the fund’s head, Coleman Stipanovich, to resign, and asset manager BlackRock has been brought in to restructure and restore confidence in the fund.
My law firm works for a variety of clients who have found themselves on the bottom end of the subprime crisis in one way or another. The tribulations of Florida’s own government only go to show just how pervasive the crisis is.
This article does not constitute legal advice or the formation of an attorney-client relationship, and is not for re-publication without express permission of the author.
Mr. Beck has a law degree from Harvard Law School, and practices law in the courts of South Florida. A significant portion of his practice is devoted to issues arising under condominium purchase agreements. He can be reached at 305-789-0072 or email@example.com