Projo 7 to 7 News Blog

A day after state officials fought successfully to retrieve $138 million that had been parked in accounts with the troubled American International Group, it turns out that Rhode Island agencies have at least $260 million more in similar unsecured accounts managed by other companies.

The "SWAT" team assembled earlier in the week by the state treasurer's office and the governor's budget office met today to form a plan of action. Representatives from the General Assembly also attended the meeting, which was held in Treasurer Frank Caprio's State House office.

There is no immediate plan to shift the money -- which is invested with currently-stable companies like Transamerica Life Insurance and Citibank -- to secured accounts backed by collateral, which would generally protect the money if those financial instutitions face similar troubles as AIG, according to Caprio.

Overall, state agencies have at least $740 million sitting in investment accounts. All but $260 million is backed by collateral, according to data provided by the state today.

But the SWAT team will continue to collect data and will make recommendations to the "quasi-public" state agencies that largely control the funds.

Those agencies include Rhode Island Housing (which has $70 million in unsecured money invested), the Rhode Island Student Loan Authority ($48 million) and the Rhode Island Clean Water Finance Agency ($112 million.)

The $138 million held with AIG -- also in unsecured accounts -- was invested by the state Department of Transportation, Rhode Island Clean Water Finance Agency, and the Rhode Island Housing.

-- Steve Peoples, of The Journal State House bureau

 Tags  R.I. finances

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