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Snort: Deadbeat defaulting Democrat tries to collect

By Michelle Malkin  •  November 12, 2008 10:36 AM

You remember Laura Richardson, right? She’s the Democrat congresswoman who defaulted six times on her home loans and has left a trail of unpaid bills in her wake. Well, she’s back. On behalf of taxpayers in her district, she’s now trying to get money back from Lehman Brothers after an investment gone awry. Hat tip to reader Thomas, who e-mails: “The irony is mighty thick.”

Savor it:

Congresswoman Laura Richardson is working to recoup the $19.9 million the city of Long Beach lost when Lehman Brothers went bankrupt in September, she announced Thursday night.

Richardson, D-Long Beach, said she and unspecified California delegation colleagues are calling on Treasury Secretary Henry Paulson to purchase the city’s now worthless investment – Lehman Brothers commercial paper, which essentially would have functioned as a short-term, 27-day loan.

City officials, already struggling with budget shortfalls, would surely be grateful if the newly re-elected congresswoman could broker the deal.

Long Beach officials made the investment as part of the city’s $1.8billion investment portfolio just days before Lehman Brothers went bankrupt.

Under the federal Troubled Assets Relief Program, which is part of the Emergency Economic Stabilization Act passed by Congress in September, the Treasury Department can buy up troubled assets held by local governments.

Richardson said in a statement she wants to ensure “that taxpayers are protected and receive a share in the solutions” of the economic rescue plan.

Long Beach is also expected to lose up to $5.8 million more as a result of shifting other money into lower-yield investments, city officials have said.

Posted in: Subprime crisis