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.
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.