Florida reopens frozen $14 bln investment fund
By Michael Peltier
TALLAHASSEE, Fla., Dec 6 (Reuters) - Florida officials on Thursday reopened a $14 billion money market fund frozen last week as panicked local authority investors withdrew billions due to jitters over bad investments in the 25-year-old fund.
State Board of Administration spokesman Mike McCaulley said the fund had been unfrozen but could not give immediate details on withdrawal activity.
"The fund is open," McCaulley said.
Responding to a run on deposits by local governments following a downgrade of nearly $2 billion of the pool's assets, Florida's governor and other members of the State Board of Administration last week froze the pool that has provided local governments and school district with a place to park cash since 1982.
The three-member board led by Gov. Charlie Crist on Tuesday named BlackRock Inc (BLK.N) as interim administrators.
The state has split the investment pool by siphoning off $2 billion in distressed investments, leaving $12 billion in high-quality assets in a separate fund officials hope will receive a "AAA" rating in the next few weeks.
Withdrawals from the $12 billion fund have been restricted while the fund rebuilds. Investors will be allowed to withdraw up to 15 percent, or $2 million, in funds held in non-distressed funds. (Editing by Michael Christie and Jonathan Oatis)
