Updated 6 yearss ago
» A run on a state-managed investment pool for local governments caused the State Board of Administration to freeze the fund temporarily last month. Local governments had withdrawn close to $14 billion, about half of the funds from the pool, in two months. Investors became concerned over the fallout from mortgage-backed securities. About 6% of the state-run fund is invested in securities that have defaulted. Four days after closing, the state reopened the fund with limits on withdrawals. Pool manager Coleman Stipanovich resigned, and the state shifted management of the fund to BlackRock Inc.