Giannoulias won his race, but three years later the boy-banker is about an $85 million dollar loss in what were supposed to be safe investments.
Greg Hinz has more in his Crain's Chicago Business blog:
State Treasurer Alexi Giannoulias' office has stopped answering questions about problems in the investment portfolio of the state's $2-billion Bright Start college savings program.
Mr. Giannoulias says his lawyer (Illinois Attorney General Lisa Madigan) has advised him to keep quiet, lest he undermine settlement talks with Bright Start manager Oppenheimer Funds, which he asserts may have violated its fiduciary duty by sticking money in risky mortgage-related securities.
There is some truth in that. The manager who ran Oppenheimer's Core Bond fund left the company earlier this year, and analysts at Chicago's Morningstar Inc. have said the fund was leveraged to the hilt. Ms. Madigan's office has put some limits on public comment.
But Mr. Giannoulias is exaggerating -- perhaps because the questions just keep on arising about whether he properly managed Oppenheimer, or just let it do what it wanted amid a rising number of red flags.
Giannoulias is a likely candidate for the US Senate in 2010, in just one month, Alexi proved he posseses at least some financial acumen, he raised $1.1 million.
Even in a big state like Illinois, that's a lot of cash.
Related post:
Alexi Giannoulias: Not so transparent
Technorati tags:
politics 
Illinois 
Election 
Democrats 
Alexi Giannoulias 
senate 
banking 
oppenheimer funds
1 comment:
That fund has a prospectus, the prospectus that I saw for that fund stated that they had the ability to and that they would trade in a range of derivative products including products that have become very illiquid.
Alexi crossed all of the Ts and dotted all of the Is when he helped those mobbed up bank customers loot that Grandmother's house but now he can't even read a simple prospectus?
He stated under oath that he could not remember the specifics of a bank customer with a felony bank fraud conviction scamming an elderly woman out of her home and now he can't even read a prospectus?
Post a Comment