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.
