10 percent

January 24th, 2012

State Senate Vice President Donna Mercado Kim and several others are unhappy that Citigroup received a slice of the state’s record $1.3 billion bond sale in November given Citigroup’s prior history with state investments.

Citigroup was involved in a $1 billion dispute with the state over controversial investments in student-loan backed auction rate securities.

Kim (D, Kalihi Valley-Halawa) said the Abercrombie administration should not have rewarded Citigroup.

Bank of America/Merrill Lynch and Goldman, Sachs & Co. were the co-senior managers and received the largest commissions, while Citigroup had the better share among co-managers that included Barclays Capital, J.P. Morgan and Morgan Stanley.

Kim aired her concerns at an informational briefing Tuesday on the state’s general-obligation bond debt before the Senate Ways and Means Committee. “What it looks like is we’re rewarding these guys, when the wound is still open on SLARS,” she said afterward.

Kalbert Young, the state’s budget director, said the state is carrying nearly $7.8 billion in total bonds, including about $4.9 billion in general-obligation bonds.

4 Responses to “10 percent”

  1. Follow the $:

    I mentioned to follow the money when the bond were first given out. The little guy like you and me investing our money would never be able to get such a great reward of a return of investment of 3 plus percent. Only crony companies like Citi Group aka to big to fail Wall street Bailout thiefs that support the Democrat Machine.and Goldman Sach is pretty muched owned by Bishop Estate.
    Follow the $ people.
    Mrs. Kim is always the Johnny come lately the Senate and the public should have been made aware of the buyers before the bonds were sold.

  2. Guido Sarducci:

    UH Manoa activist sold Hawaii controversial Student Loan Bonds


  3. Kolea:

    People like to demonize Senator Kim, but she has been very consistent in investigating and exposing misconduct by government agencies. Others want to shut her down when she gets too close to the truth. I say unleash her on CitiGroup and the SLARS.

    @Follow the $,

    This goes beyond Democrats or Republicans. Lingle broke state law in order to make the original SLARS investments at the scale she did. And the “too big to fail Wall street Bailout thieves” have not only given money to Democrats like Obama. They are giving plenty of money to Romney’s campaign and it is the congressional Republicans who are working the hardest to ensure the Wall Street crooks are shielded from any regulation.

    Both the Democrats and Republican politicians, with few exceptions, are more interested in cozying up to Wall Street billionaires than protecting regular middle and working class folks. The problem is the domination money has over the campaigns and career plans of politicians. Too many secure a cushy job in the “private” sector as a reward for their service in elective office.

  4. Goober:

    1%x10=10%. 10 people with money will pull strings and they can do so by donating. You want to be a 1% find a tax shelter in another country. Pay 15% of taxes when you should be paying 30%. President Obama is doing this to tax the 1% who have “offshore accounts”. Gingrich will be the next target of a Mac attack or a Fannie pat on the behind. NO Lottering in Lobby!

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