Lehman costs L.B. $25.8M

City Finance Director Lori Ann Farrell should be fired immediately. She is obviously incompetent. She invests $25M with a company going bankrupt? What kind of research did she do before she gave away our money? What is her salary? Whatever it is, it's too much.

Is this the same Lori Ann Farrell that the taxpayers pay $180,000 a year to manage the City’s finances? Ms. Farrell should join City Manager Pat West on the unemployment line. Is the City Council familiar with the term “due diligence?�

Fire Her wrote:

City Finance Director Lori Ann Farrell should be fired immediately. She is obviously incompetent. She invests $25M with a company going bankrupt? What kind of research did she do before she gave away our money? What is her salary? Whatever it is, it's too much.

Good idea, how stupid to "invest" that kind of money without checking out their financial standings. Was there no access to credit rating? The city just throw away our money then make us pay for it.

It comes as no surprise that the Big Long Beach and Big State Big Taxers speculate with our hard earned tax money in their efforts to provide commissions for their Big Wall Street pals. This harkens back to the days when these thieves sold Big Tobacco Bonds in order to keep the party going and to provide Big commissions for their Big Bond seller pals.

Now, they are demanding decent voters agree to their proposals for even more bonded indebtedness, to be paid primarily by non smokers and their children.

Lets hope the decent voters who do not smoke tobacco, and the decent voters who do, have learned their lesson. Lets hope ALL proposals to shake down decent taxpayers for additional loot are defeated this election.

Ronald

Buying Commercial paper is NOT speculating. Commercial paper is the lifeblood of commerce in the U.S. and has been one of the most stable investments until this crisis. A lot of "conservative" investing approaches have been upset by the current crisis. Ms. Farrell was doing her job and doing it well. Who predicted any of this financial crisis might happen? Answer: not one big deal economic or financial person. Are you going to fire everyone in the world?

We all understand the use and need for commercial paper. What we don’t understand how this investment could have made without some due diligence. Maybe Farrell should start reading the Wall
Street Journal.

Makes you wonder about the status of other City investments. Time for change at the top.

It had been speculated and reported for several months that Lehman was going under. Whether true or not, why would the city invest taxpayer's money in such a widely regarded risky investment? Was it because city management was pressed to find high yield, risky investments to offset the city’s budget deficit? Did other comparable cities make the same mistake?

C’mon Aldo. What do you mean who predicted that this financial crisis was going to happen? Most people in the investment community moved their money away from these financial institutions and into safer places months ago. That is why the risk premium was so high and is also one of the reasons causing the financial institutions to spiral downwards. I find it questionable that the city would take a risk with Lehman when admittedly safer options existed in the crazy market we have been experiencing for months.

Whether Ms. Farrell was doing her job well or not, the question is, should someone be accountable for losing $25 million of taxpayer’s dollars? If not, how high must the price tag be before accountability is considered in Long Beach?

And your city hall has the audacity to ask taxpayers to pay a parcel tax for infrastructure improvements.

Days before?
The trader web pages were talking about Lehman bellying up for weeks before.
Fire her. She's a complete moron.

Mike Ruehle wrote:

It had been speculated and reported for several months that Lehman was going under. Whether true or not, why would the city invest taxpayer's money in such a widely regarded risky investment? Was it because city management was pressed to find high yield, risky investments to offset the city’s budget deficit? Did other comparable cities make the same mistake?
C’mon Aldo. What do you mean who predicted that this financial crisis was going to happen? Most people in the investment community moved their money away from these financial institutions and into safer places months ago. That is why the risk premium was so high and is also one of the reasons causing the financial institutions to spiral downwards. I find it questionable that the city would take a risk with Lehman when admittedly safer options existed in the crazy market we have been experiencing for months.
Whether Ms. Farrell was doing her job well or not, the question is, should someone be accountable for losing $25 million of taxpayer’s dollars? If not, how high must the price tag be before accountability is considered in Long Beach?

She gets paid 180,000?!

Who hired her? That person should be fired with her.

Trading paper with LEHMAN, who the street KNEW was coughing up blood?

Does she know who the Federal Reserve uses to trade? She should.

HINT: It's the only brokerage who has been posting higher quarterly profits, while all the other's have been going down the tubes.

She could have traded paper with them, and had no worries.

ANY professional should have known this!

FIRE HER, and FIRE WHOEVER HIRED HER!

Juan Pardell wrote:

And your city hall has the audacity to ask taxpayers to pay a parcel tax for infrastructure improvements.

i was having a hard time with the parcel tax BEFORE this news....now? i don't think so.
and yes, i see the need for improvements but i don't feel we can count on the money being used wisely. it's like throwing good money after bad money...

Wow!!! I think whomever decided to buy Lehman commercial paper after the stock had dropped approximately 80% in a week should be fired! Does our city have any oversight for such large investments?

It seems to me that there were rumors and warnings of trouble at Lehman for a couple of weeks before it's bankruptcy and demise. Certainly the huge threats to the financial institutions were known. Someone should be fired over a $25,8 million loss. Who was responsible for making the investment and it's timing? Where is the accountability? Such an investment may normally be a low risk one, but these are not normal times, and that has been known for some time. That is, after all, the peoples money which has been lost.

You are right the commercial paper is an important tool to help finance day to day operations. However, would you buy paper from a company that's seen it's stock get hammered the week prior. Also, I believe there had been several stories printed regarding Lehman's liquidity issues. Thoughts?

We pay this woman $180,000 a year? You must be kidding me.

I hope someone confronts her at her gym.

FIRE her!

Aldo LB wrote:

Buying Commercial paper is NOT speculating. Commercial paper is the lifeblood of commerce in the U.S. and has been one of the most stable investments until this crisis. A lot of "conservative" investing approaches have been upset by the current crisis. Ms. Farrell was doing her job and doing it well. Who predicted any of this financial crisis might happen? Answer: not one big deal economic or financial person. Are you going to fire everyone in the world?

The financial meltdown has been predicted in the press for months. Neither you nor Farrell were listening. Perhaps you think that our leaders were sincere when they told you everything was ok? Shame on you for believing them. However, since it's her job to invest my money, I blame her. Yes, she should be fired for incompetence and malfeasance.

I'm contacting my council member to demand Farrell be fired. I suggest all Long Beach residents do likewise. They won't change unless we demand it.

She should be fired immediately

What is this, the Lord of the Flies? What a bunch of blood thirsty hacks. Your rants prove only that your ignorance is as hefty as your ire for government. Instead of calling for Ms. Farrell's head, you should thank her for ensuring our losses in this disasterous economic meltdown was not greater. Put down your pitchforks and pick up a newspaper yourself to see that everyone is being hurt, and it is not Ms. Farrell's fault.