Monday, April 22, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, November 25, 2010
FULL TEXT: Hawaii $1.1B settlement agreement with Citigroup
By News Release @ 1:50 PM :: 6350 Views :: Energy, Environment

HONOLULU – Hawaii Attorney General Mark Bennett and Citigroup Global Markets Inc. (Citi) announced today that the State of Hawaii and Citi have reached a resolution concerning the State’s purchase of auction rate securities.

The State currently owns approximately $869 million in such securities, which were the subject of auction failures beginning in 2008.  The State is currently earning interest on these securities, but the market value of the State’s portfolio has significantly decreased.  The State has already liquidated approximately $200 million worth of securities at par value since February 2008.

The attached agreement (which the State and Citi have been negotiating for several months since developing basic deal parameters in July), principally provides:

1) In June 2015, the State will have the option to require Citi to purchase some or all of the State’s remaining auction rate securities portfolio at par as well as to have Citi make up the difference between liquidation price and par on any of the State’s auction rate securities which have been previously involuntarily liquidated below par, which means the State’s taxpayers will lose no principal on any of the State’s auction rate securities investments.

2)  Starting in July 2012, the State will have the ability to obtain interim liquidity on its auction rate securities portfolio of up to $150 million worth of the securities, at market value, with the difference between that market value and par paid by Citi in July 2015.

3) The State has released potential claims against Citi and any affiliated entities or individuals in connection with its investments in auction rate securities, and Citi admits no wrongdoing.
Attorney General Bennett stated:  “These negotiations have been complex and difficult, but from the beginning the State and Citi worked hard to find a resolution.  I believe this settlement is in the best interests of the State, and provides substantial value to the State.  The State will essentially get back what it paid for these securities, plus interest collected on them.  The alternative—lengthy, expensive litigation—would have provided no certainty, and might, in the end, have been unsuccessful.  Bottom line—taxpayers will not lose out on the principal value of these securities, and that is a good result for Hawaii and its citizens.  I would like to commend Citi for this agreement, for the way it has approached this matter, and for its good faith efforts to resolve this issue.”

Georgina Kawamura, Director of the Hawaii Department of Budget and Finance stated:  “I believe this agreement makes sense for Hawaii.  Our goal in these negotiations has been to assure that our taxpayers will not receive less than par on these investments, and this agreement provides for that.”

“We’re pleased to provide this liquidity solution to the State,” said Alexander Samuelson, Director, Citi Public Affairs.  “We value our relationship with the State of Hawaii and thank Attorney General Bennett for his dedication during the past several months of negotiations to finding a solution.”


FULL TEXT: Settlement Agreement

SCOT-FREE: UH Manoa activist sold Hawaii controversial Student Loan Bonds


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii