Despite what you might read in the daily newspaper, the Lehman Brothers bankruptcy will have an impact here, albeit an indirect one. The Miami Herald reports (Florida pension fund, Citizens hold Lehman securities)that the Florida pension funds, including Florida Retirement System, the Florida Hurricane Catastrophe Fund and the Florida Prepaid College Plan, hold $322 million in Lehman stock and bonds. Our local governments use the Florida Retirement System.
Dennis MacKee, a spokesman for the State Board of Administration, which manages these funds, told the Miami Herald that the agency has an $84 million unrealized loss on its holdings.
