November 21, 2007
ME loses $20M in subprime investment
Maine lost $20 million in a risky investment that went sour, according to a report from Portland news station WGME-TV.
In August, the state invested tax dollars in a short-term, high-risk offshore fund called "Main-Sail Two" at the recommendation of Merrill Lynch brokers. Main-Sail was backed primarily by subprime mortgages and is now unable to reimburse Maine the $20 million it invested, the station reported.
State Treasurer David Lamoine told the station that his department won't invest in such high-risk ventures in the future, and he, Gov. John Baldacci and Maine Speaker of the House Glenn Cummings said Merrill Lynch's consulting relationship with the state may not continue.
In August, the state invested tax dollars in a short-term, high-risk offshore fund called "Main-Sail Two" at the recommendation of Merrill Lynch brokers. Main-Sail was backed primarily by subprime mortgages and is now unable to reimburse Maine the $20 million it invested, the station reported.
State Treasurer David Lamoine told the station that his department won't invest in such high-risk ventures in the future, and he, Gov. John Baldacci and Maine Speaker of the House Glenn Cummings said Merrill Lynch's consulting relationship with the state may not continue.
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