Florida Lifts Freeze On Fund Holding Investments Tied To Subprime Mortgages; Concerned Municipalities Promptly Pull Out Another $1.2 Billion

Bloomberg News reports today:

• Schools and towns in a Florida fund that lost almost half its assets to withdrawals last month pulled out another $1.2 billion today when the state lifted a freeze on their accounts, officials said in a statement. Cities and counties that use the Local Government Investment Pool like a bank account are able to tap their funds on a limited basis ... . [...] Participants will have full access to new deposits and 86 percent of existing balances, from which removals are limited to the greater of $2 million or 15 percent.

For more, see Florida Fund Reopens, Has $1.2 Billion of Withdrawals.

See also, Florida Fund Caps Withdrawals as Towns Face Hardships.

For story updates, see:

• Florida Fund Assets Reduced By $1.9 Billion After SIV Losses (Bloomberg News - 12-12-07),
• Crist: State won't bail out investment fund (The Miami Herald - 12-12-07),
• Florida says $9B can't be pulled from fund (Local governments can't pull out more than $3B for now) (Orlando Sentinel - 12-12-07),
• Florida-run investment fund wobbles to recovery (Sarasota Herald Tribune - 12-12-07),
• State to investigate Local Government Investment Pool (The Miami Herald - 12-11-07)

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