Morgan Stanley and Citigroup Inc., criticized by California for arranging investment bets against state bonds, pitched Treasurer Bill Lockyer on ideas for legislation to sell $25 “minibonds” to expand sales to individuals, records from his office show.
California should limit negotiated bond sales by school districts and restrict underwriters and financial advisers’ involvement in campaigns for voter approval of the offerings, according to state Treasurer Bill Lockyer.
Only eight months ago, Bill Lockyer was the envy of California politicians. Undefeated in 39 years as assemblyman, senate leader, attorney general and treasurer, the Democrat won 5.4 million votes in his 2010 re-election, more than any other state official in the U.S.
California, poised for its first credit upgrade by Standard & Poor’s since 2006, has sold almost one-third of a $1.35 billion debt issue with its relative borrowing cost at the lowest point in more than three years.
California, poised for its first credit upgrade by Standard & Poor’s since 2006, got orders for almost 31 percent of $1.35 billion of bonds being sold with its relative borrowing cost at the lowest point in more than three years.