How Giannoulias oversaw the failure of Illinois’ college savings plan 

Today’s Chicago Tribune explores the story of how Illinois’ Bright Start college fund — a fund to which millions of families contributed — suffered severe losses in one of its more conservative investment choices. At the center of that story is the Democrats’ Senate nominee in Illinois: Alexi Giannoulias.

Giannoulias had made revitalizing the underperforming program a key component in his successful 2006 campaign, and the investment firm he selected to turn around Bright Start was making positive changes. But the fund manager also made a decision to heavily invest in volatile securities tied to the housing market.

Documents and e-mails recently obtained by the Tribune under the state’s open records law show the rookie treasurer and his staff were concerned early on about the aggressive move by OppenheimerFunds Inc. in what was supposed to be a more conservative fund in the Bright Start program.

But at each turn Giannoulias stuck with the firm’s strategy, even as the housing market soured and losses accelerated.

The whole thing is well worth reading.

About The Author

David Freddoso

Bio:
David Freddoso came to the Washington Examiner in June 2009, after serving for nearly two years as a Capitol Hill-based staff reporter for National Review Online. Before writing his New York Times bestselling book, The Case Against Barack Obama, he spent three years assisting Robert Novak, the legendary Washington... more
Pin It
Favorite

More by David Freddoso

Latest in Nation

Thursday, Mar 26, 2015

Videos

Related to Nation

© 2015 The San Francisco Examiner

Website powered by Foundation