Wednesday, January 02, 2008

Jeb Bush Implicated In Latest Florida Financial Mess

No offense to my friends who live in Florida, but your state is really f*#ked up. The latest proof comes in the gathering storm surrounding the money market debacle that involves Lehman Brothers and, (drum roll) Jeb Bush!

Seems George’s brother who as Governor was on the board overseeing Florida's State Board of Administration (SBA) and its $28 billion fund. (Much like a money market fund.) The problem has come from local municipalities staging what amounts to a "run on the bank". So far they have withdrawn $9 billion over fears that the fund has too much bad debt. A majority of this paper was sold to SBA by Lehman Brothers and now that he has left the Governor’s mansion, guess who settled into a consulting job with Lehman in August? Jeb Bush!

Now the fund is frozen and smaller municipalities face a crisis over the locked up funds. According to Forbes Magazine, Edward Siedle, a former Securities and Exchange Commission attorney who investigates money management wrongdoing and has worked on behalf of several Florida public pension funds, thinks this is just the tip of the iceberg.

Questions of when the debt was sold to the state and Bush’s involvement could get ugly. Stay tuned!

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