FOR IMMEDIATE RELEASE

June 25, 2012

Contact:
Nicole Galloway
(573) 303-1471
ngalloway@boonecountymo.org
twitter.com/nicolergalloway

                                                                                                                                                                               

Following global bank downgrades, Boone County Treasurer Nicole Galloway says county investment portfolio safe and secure

County Treasurer Galloway says county’s portfolio would see no impacts from the downgrade

COLUMBIA On the heels of Moody’s Investors Service downgrading 15 global banks, Boone County Treasurer Nicole Galloway said today the county’s $47 million investment portfolio would not experience any impact. Additionally, she said the portfolio is completely safe and secure and meeting the cash flow needs of county government.

“Citizens in Boone County should know their investment portfolio is managed to sustain these types of events because all of our investments either have the highest possible credit rating, the U.S. government’s full faith and credit, full collateralization or FDIC insurance,” County Treasurer Galloway said. “It is my responsibility to make sure we can pay our bills on time and that has not been impacted in any way – that is what fiscal responsibility is all about. Safety, cash flow management and return drive our investment portfolio, in that order.”

Boone County’s investment portfolio is currently broken out in the following: 50 percent in U.S. government agency debt, 41 percent in FDIC-insured or fully collateralized certificates of deposit, 5 percent in bankers acceptances with the highest possible rating and 4 percent in commercial paper with the highest possible rating.

Of the $47 million currently invested for citizens, just $220,000 is invested in Bank of America, N.A. certificates of deposit. Even though the bank’s parent is one of the 15 downgraded banks, the downgrade has no direct impact, the investment is 100 percent insured by the FDIC so no county money is at risk and the bank is considered investment grade.

“I will continue to support our banking institutions in Boone County that are investment grade, but that has always and will always require full collateralization or a FDIC insurance guarantee just like a citizen would do with his or her checking or savings accounts,” County Treasurer Galloway said. “This is just common sense, and guarantees citizens of Boone County receive the protections they expect and deserve.”

About Boone County Treasurer Nicole Galloway

Treasurer Galloway is a CPA and Certified Fraud Examiner. She manages a $47 million investment portfolio, and is responsible for making sure it is invested safely and securely, that investments meet the liquidity necessary for the county’s cash flow needs and that investments achieve the best return possible. She issues all general obligation and revenue bonds, administers banking services and manages Unclaimed Property for the county. She provides oversight for several financial and non-financial projects as a member of county boards and committees, including the Local Emergency Planning Committee.

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Contact:
Nicole Galloway
Boone County Treasurer
801 East Walnut, Rm 205
Columbia, MO 65201-7798
Email: NGalloway@BooneCountyMO.org
Phone: (573) 886-4367
twitter.com/nicolergalloway