Reuters- Florida has hired two experts, including one with a long track record in hedge funds, to examine how a local government investment pool was nearly wiped out late last year, state legislators said on Monday.
Tanya Styblo Beder, who heads financial advisory firm SBCC and held top positions at Citigroup and hedge fund Caxton Associates, will investigate the Florida Local Government Investment Pool to make sure the fund is not vulnerable to another run, said Marco Rubio, speaker of Florida’s House of Representatives.
Rubio said lawmakers also hired Thomas Tew, a Miami lawyer and securities law expert, who will act as the attorney in the probe.
Late last year, the fund lost more than $10 billion as news circulated that it owned risky securities that had been downgraded in the wake of losses on mortgage market securities and amid worries about broader housing market losses.
