Email communication with me and those idiots from 2007
Date Sent: 2007-07-18
Last Name: Hess
First Name: John
Respond By: Email
E-Mail Address: [email protected]
Date Sent: 2007-07-18
Time Sent: 15:14:20
Organization:
Question: )In an article from Bloomberg on June 1st
that stated, “The California Public Employees` Retirement System, the
nation`s largest public pension fund, has invested $140 million in such
unrated CDO portions, according to data Calpers provided in response to
a public records request. Citigroup Inc., the largest U.S. bank, sold
the tranches to Calpers.” The article opened up about Bear Stearns
trying to find any greater fools to buy their falling CDO`s.
My question is:
Now we go to 48 days later and see that these 2 Bear Stearns funds are
“worthless” according to Wall Street Journal. Are these the same funds
or overlap into them? If they are not could you provide detail which
funds they are in since they will soon face the same demise? Thanks,
John
Response next day:
“From: McKinley, Clark [mailto:[email protected]]
Sent: Thu 7/19/2007 11:38 AM
To: Hess, John
Cc: TalkBack, PAOF1
Subject: RE: John Hess – CalPERS On-Line Web Site – Ask CalPERS # 259016
Mr. Hess:
In response to media reports about risky collateralized debt obligations
(CDOs), or packages of securities backed by bonds, mortgages and other
loans. There have been related news stories about borrowers defaulting
on loans to put these investments at risk. At least one article
suggested that banks who sold these securities to CalPERS were trying to
put something over on us.
Here is our response:
CalPERS owns $140 million in CDOs. The facts are:
1. None of these CalPERS investments are tied to the sub-prime market
that is having problems.
2. These investments are top-rated bank loans that are doing extremely
well.
3. We are well protected and not at risk. We are not exposed to the Bear
Stearns meltdown.
Clark McKinley
Information Officer
CalPERS Office of Public Affairs
916/795-4196; fax: 916/795-3507 ”
