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[0:14] ..." were purchased by the turnpike authority and the Massachusetts housing partnership. The executive director of the partnership Clark Ziegler tells me there was great concern."...
[1:36] ..." certainly in previous settlements they have really prioritized. Public agencies in the commonwealth. Terms -- repurchase of these securities so we've made them aware of our situation but beyond that we really were not involved"...
[2:42] ..." there were already AAA. In our case they were students. They were. Collateralized by a student loans from government guarantees that certainly. Days looked and felt like liquid and very secure investments but that contracted --"...
[0:00]" This is -- but he sold in the WBZ newsroom. Bank of America has agreed to return a total of 43 million dollars to appear state agencies in the ongoing unraveling of risky auction rate securities. Now the bank will buy back the securities that were purchased by the turnpike authority and the Massachusetts housing partnership. The executive director of the partnership Clark Ziegler tells me there was great concern."
[0:24]" We had. Some of our cash auction rate securities and like many other institutional and nonprofit investors you know we we. They were -- as. Very liquid investments that rule is through this capture money market account so we have a pretty substantial amount of funding in my in auction rate securities when the market --"
[0:45]" And what happened when that more."
[0:48]" approach these assets they still had value the -- triple -- rated securities but -- there was no market to sell them so fortunately for us we did not meet liquidity. -- for the near future so we did not have any kind of crisis. But it was certainly concern having an insignificant amount of cash tied up investment and couldn't sell."
[1:07]" So did you contact these states securities division."
[1:10]" We were in contact -- Security division. And we also were talking directly to bank America and in after they buy back these securities from day one but until this we literally have been any movement."
[1:23]" So how long to this negotiation going for."
[1:26]" You know -- I really went up. Party to rid of the conversations that this securities division may have had a Bank of America for the first we knew. We want to make sure that they were aware of our situation and certainly in previous settlements they have really prioritized. Public agencies in the commonwealth. Terms -- repurchase of these securities so we've made them aware of our situation but beyond that we really were not involved in the discussions between. The factors that office and picked --"
[1:54]" So the settlement is obviously very positive for your agency as I understand it. You'll be receiving about 24 point nine million in in return for these securities. And going forward. Is your investment program changing at all."
[2:11]" However -- I think I think everyone who was positions you know treasury management and learn some lesson from this experience and we have long you know. Look or investment policy very hard and and certainly our. Point two. Take a very cautious approach to two. Caption that's going forward but I think a lot of lessons of Miller -- a lot of people as part of the experience."
[2:37]" Now these auction rate securities though were were marketed as as safe investments."
[2:40]" Oh absolutely they were there were of these there were already AAA. In our case they were students. They were. Collateralized by a student loans from government guarantees that certainly. Days looked and felt like liquid and very secure investments but that contracted --"
[2:56]" So going forward what is the major change that Yule undertake."
[3:02]" You know we have generally been very especially public agency that pretty cautious around. Looking for highly you know very highly rated very liquid investments and certainly -- Going forward I think we are going to. You know -- maturities pretty pretty tightly in terms of the cash investments that we -- and I think you know we will learn some lessons as many many of the treasury managers around the country."
[3:26]" Fair enough Clark its pleasures that you want to thank you so much thank you."
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