The University of California has lost tens of millions of dollars, and is set to lose far more, after making risky bets on interest rates on the advice of Wall Street bankers… Among Augustine’s advice was for the university to greatly increase its borrowing by pledging student tuition monies to cover the debt. Until that time, the university had counted on the state government to issue bonds, which were secured by taxes… Taylor was a managing director at Lehman and head of the bank’s West Coast public financing operations. He oversaw 15 investment bankers, according to his résumé. Taylor was also then closely connected to top university officials. He was on the board of directors of the UCLA Foundation and had earlier served as a regent.

Read full article [here].
by Melody Petersen, The Orange County Register.

Posted: February 21st, 2014, by: admin. Categories: . Awaiting Comments.