Khavari to Alex Sink: Here's All the Help You Need to Oversee the State Board of Administration

Mon Jan 11, 2010 7:40am EST

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MIAMI, Jan. 11 /PRNewswire/ -- Noted economist Farid Khavari, a Democratic
candidate for Florida governor, has gained national attention for his plan to
create a state-owned bank in Florida. Today he responded to Chief Financial
Officer Alex Sink's recent call for additional oversight of the State Board of
Administration (SBA). Sink is also a Democratic candidate for governor.

"The simplest way to eliminate dubious investing by the State Board of
Administration is to shine light on every deal. Simply post all documents
relating to every transaction on a website. For each deal, show who is selling
it, how many other deals they have sold the SBA, what fees the seller is
earning, who is buying, who approves it, how many other deals they have done
with this seller, and so on, together with a summary of the amount invested
and the terms.

"Now who would buy a bunch of derivatives from a company in the Cayman Islands
for $650 million, where over half of the money was lost? Who would ignore
pages and pages of warnings and buy junk ever again, when people could see
what is going on? Thousands of ordinary people with common sense would keep an
eye on the SBA for you, all for free," Khavari said. 

"I agree that Alex Sink, Bill McCollum and Charlie Crist, as the three
trustees of the SBA, do need plenty of help. On their watch tens of billions
of dollars were lost. The people of Florida will have to pay thousands of
dollars per person in higher taxes if we can't get the SBA back on track."
McCollum is Attorney General and a Republican candidate for governor. Crist is
governor and a Republican candidate for the U.S. Senate.

"In a good year, the SBA's goal was to earn about 7.5%. Last year their goal
was to lose less than 50%. Creating the Bank of the State of Florida could
provide the SBA with a guaranteed 10% per year yield," Khavari said. "This
would save hundreds of millions in investment bankers' fees alone."

Khavari's campaign is based on his economic plan involving the creation of one
million new private sector jobs in Florida - without subsidies, reducing
insurance costs by 30%, and the creation of the Bank of the State of Florida.
Using ordinary fractional reserve rules, the bank would pay 6% for savings and
provide 2% mortgages as well as low-cost financing for state and local
governments and Florida businesses, while earning billions per year for the
state treasury.

Farid A. Khavari, Ph.D. is an economist and author of nine books, including
Environomics. His latest book, Toward a Zero-Cost Economy, is available in
stores or for free download at his website,

Photo of Farid A. Khavari:

 Bob Waterstripe, Spokesman          
 Khavari for Governor Campaign       
 P.O. Box 570502, Miami, FL 33257          

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SOURCE Khavari for Governor Campaign

Bob Waterstripe, Spokesman, Khavari for Governor Campaign, +1-305-318-4984,

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