Investigate, Take Action on LIBOR Losses to Florida Pension Fund, Local Governments

FOR IMMEDIATE RELEASE
Contact: Ashley Mushnick

August 2, 2012

202-225-3001

House Democrats to Bondi: Investigate, Take Action on LIBOR Losses to Florida Pension Fund, Local Governments

(Washington, DC) As other states and dozens of municipalities consider legal action against banks implicated in the recent LIBOR scandal, today the Florida Democratic delegation in the House of Representatives requested Florida Attorney General Pam Bondi formally investigate the possibly staggering losses dealt to local governments, school districts, and Florida’s pension fund as a result of this blatant financial manipulation.

While Florida Attorney General Pam Bondi’s office is said to be “reviewing” these matters, no formal investigation has been launched. Just over a week ago, Governor Rick Scott wrote the Florida Congressional Delegation expressing his concern over the scandal’s impact on the “income, retirement savings and cost of living” of Floridians. However, he failed include any explanation on action his Administration is taking on behalf of the nation’s fourth largest pension fund, or for the many municipalities and school districts whose interest rate swap agreements made them more vulnerable as a result of the financial industry’s manipulation.

“Many of these entities entered into interest rate swap agreements to protect themselves from interest rate increases on bonds,” the Democratic delegation writes in the letter. “However, such interest rate swap agreements made these entities more vulnerable to losses caused by the historically low interest rates and adjustment in the LIBOR. We therefore request that you conduct a formal and thorough investigation… and aggressively take necessary action to recover any losses to the State of Florida.”

Read the complete letter here.

###

Michelle DeMarco Press Secretary Florida Senate Democratic Office 850-487-5833

Tweet