Taft, Petro knew about fund`s woes many months ago

KenBlackwell.com via Toledo Blade ^ | June 08, 2005 | MIKE WILKINSON and JAMES DREW

[Columbus Dawg]

Workers' comp bureau concealed $215M loss; Taft, Petro knew about fund's woes many months ago

By MIKE WILKINSON and JAMES DREW BLADE STAFF WRITERS

COLUMBUS — Democrats were screaming “cover-up” yesterday after state officials admitted that a high-risk hedge fund that the embattled Ohio Bureau of Workers’ Compensation had invested in had lost $215 million in just a few months last year.

The bureau acknowledged that the fund, managed by a Pittsburgh-based investment firm, lost the money between February and September, 2004. MDL Capital Management relinquished control of the fund in November.

Although the bureau has known about the losses since September, it wasn’t revealed until yesterday, a day after The Blade began making calls upon learning that state investigators had uncovered huge losses at the bureau.

A spokeman for Gov. Bob Taft said last night that Mr. Taft had been told in September that there was an investment loss at the bureau — a loss of $10 million to $20 million.

Bureau records show that Attorney General Jim Petro’s office also was informed of the investment loss in September. Spokesmen said Mr. Taft and Mr. Petro did not learn the full extent of the loss until yesterday.

[Columbus Dawg]

Oh boy, things aren't lookin good for poor ole RINO Bob.

[Ticonderoga34]

How can you lose 215 million dollars?

[ZRicochet]

I went to the Ohio GOP site yesterday and it looks like they are wanting Betty Montgomery to run for Governor. As if Ohio doesn't already have enough RINO's. I belong to the American Legion, VFW and some other such clubs, everybody absolutely hates her for how she had the state almost destroy all the private clubs. The same goes for the the pro gun crowd, if she wins be assured she will try to overturn our CC W's.

[GovernmentShrinker]

Same way Long Term Capital Management lost a few billion practically overnight. Insane leverage levels. LTCM was reportedly levered at 300 times its equity when it blew (and nearly took down the global financial system with it).