Tuolumne County Passes On Lehman Brothers Bankruptcy Action
Sonora, CA — Tuolumne County has elected not to pursue a potential settlement through a bankruptcy attorney regarding Wall Street giant Lehman Brothers filing for bankruptcy.
Treasurer and Tax Collector Del Hodges told the Board of Supervisors this morning that he and County Council Gregory Oliver made that decision given what the investment might be as compared to a doubtful reimbursement.
Tuolumne County had invested $2 million of its portfolio in Lehman Brothers corporate bonds. Hodges said that he is permitted to invest as much as 30 percent of the county´s portfolio in corporate bonds. He added that at the time of the investment Lehman Brothers had a solid rating.
San Mateo County on the other hand had in excess of $155 million invested in Lehman Brothers corporate bonds. That county is filing a lawsuit in an attempt to recover a portion of a major investment. San Mateo wanted to have Tuolumne County join in the lawsuit.
Written by Bill Johnson