The Florida House of Representatives hired risk management consultant SBCC Group and Tew Cardenas, a law firm with expertise in financial transactions, to evaluate the Florida State Board of Administrations Local Government Investment Pool, said Jill Chamberlin, communications director of Florida House Speaker Marco Rubio. State Rep. Carl Domino, a longtime investment manager, will lead the House review, which is designed to determine if new legislation is needed to support best investment practices, according to a statement from Mr. Rubio.
Tanya Styblo Beder, SBCC chairman, and Thomas Tew, attorney, were asked to complete their analysis and provide recommendations within 45 days, Ms. Chamberlin said.
The internally managed pool had about $30 billion in assets before reports of subprime credit-related investment problems caused a run of withdrawals last fall. It now has about $9 billion. Federated Investors was selected earlier this money to manage the pool, pending contract negotiations.
We want to restore public confidence in this (pool) and see if anything needs to be done that the Legislature can do to prevent this from happening again, Ms. Chamberlin said.
The Florida SBA oversees $187.5 billion. Michael P. McCauley, FSBA spokesman, couldnt be reached for comment.