HARRISBURG, Pa., Sept 17, 2008 /PRNewswire-USNewswire via COMTEX/ -- Pennsylvania Treasurer Robin L. Wiessmann today issued the following open letter to Pennsylvanians:
Fellow Pennsylvanians,
Since late last summer, our nation has experienced considerable economic volatility and market turbulence, which continues to plague our economy. In this challenging economic climate, the Pennsylvania Treasury Department has been working tirelessly to protect and safeguard the Commonwealth's assets.
The latest in a recent string of upheavals on Wall Street came this past weekend, when our nation's financial system was shaken to its core by the news of Lehman Brothers' bankruptcy and the sale of Merrill Lynch.
While these actions were alarming due to their substantial impact on the structure of America's overall financial system, I am pleased to report that Treasury's investment professionals were well prepared to weather this latest storm. Proactive steps were taken over the last six months to minimize exposure to Lehman Brothers holdings. At close of market on Friday, September 12, 2008, Lehman Brothers holdings accounted for 0.05% of Treasury's approximately $18.7 billion in investments under management. Treasury has no Merrill Lynch and no AIG holdings in its portfolio.
Since my first day in office, it has been my goal as Pennsylvania Treasurer to provide effective stewardship of the Commonwealth's funds and investments through calm economic times as well as the rough seas we have been experiencing since last summer. That is why I made financial asset management a cornerstone of my agenda as your Treasurer.
Earlier this summer, I instructed Treasury staff to conduct a comprehensive investment and cash flow study, which resulted in the reallocation of $3.4 billion of the Treasury investment portfolio to ensure the liquidity and safety of the Commonwealth's funds, in addition to enhanced returns. My actions were guided by Treasury's stringent liquidity requirements because Treasury, as distinguished from the pension funds, is primarily a cash operation - we must be able to pay the Commonwealth's bills, especially as the economy continues to tighten.
In addition to securing and fortifying the Commonwealth's assets, we've been reviewing our Department budget in anticipation of the continuous weakening of the economy. We remain mindful of our own operations and will adjust our budget as necessary in this difficult fiscal environment.
We will continue to take precautions against any potential threats in the marketplace by maintaining our thorough portfolio reviews and remaining vigilant against future market threats.
Having worked on Wall Street for many years, I know first-hand that there is no way to know for certain where the markets are headed, but I am confident that we are conducting the necessary investment research and market analysis to safeguard the assets of Pennsylvania stakeholders.
SOURCE Pennsylvania Treasury Department
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