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The Local Government Investment Pool fund bled more than a half a billion dollars on the second day it was re-opened.  Cities and towns deposited $1.5 million into the fund, but they took out $560 million.  About $10 billion is left.  State leaders froze the fund last week, after concerns over exposure to subprime mortgages caused a run that depleted more than half of the fund.

“We appear to be having a number of financial institutions in the state that are stepping up and trying to work with investors and trying to help them make ends meet, whether it’s a line of credit, or some type of loan with the withdrawal process open from the SBA fund,” said Tara Klimek, a spokesperson for Chief Financial Officer Alex Sink.  “So it seems like there’s a number of different options out there.”

The investment firm that is now handling the fund split it up into two different funds.
The bulk of the fund is invested in low-risk securities, the rest in riskier investments.