8 Economic Conditions Declining interest rates Deteriorating housing market Reduced lending Higher energy costs Rising unemployment Crisis in September Federal Reserve lowering interest rates Congress passes $700 billion rescue package Forecasts of negative GDP in 2009 Negative Treasury yields
9 September Turmoil 9/07 – U.S. government seizes control of Fannie Mae and Freddie Mac 9/15 – Lehman Brothers files for bankruptcy 9/15 – Bank of America announces plans to acquire Merrill Lynch 9/16 – Reserve funds break buck 9/16 – AIG rescued by Federal Government 9/25 – Government seizes control of WaMu 9/29 – FDIC brokers Citigroup acquisition of Wachovia (Wachovia later agreed to be acquired by Wells Fargo)
10 Investment Committee Community Volunteers Ed Manning Retired Managing Partner of Ernst and Young, CPA John Cheney, DBA Retired Associate Professor of Finance, University of Central Florida
11 Committee Discussions SBA crisis Analysis of agency issuers Review of the Florida QPD program Evaluation of existing and potential money market mutual funds Conservatorship of Fannie Mae and Freddie Mac Impact of financial crisis
12 Recommendations Sold entire position in SBA Eliminated BAs and CP issued by financial companies Later suspended all CP Curtailed and later suspended agency investments Suspended all CD investments Minimized money market balances Maximized Treasury investments
Your consent to our cookies if you continue to use this website.