Case Analysis : Orange County

949 WordsMay 31, 20164 Pages
OC’s Profile Orange County is a wealthy county in the state of California. The protagonist of the bankruptcy was the long time Treasurer-Tax Collector Robert Citron, who was in charge of the investment pool that was worth $7.5 billion dollars. In the 20 years before 1994, Citron made impressive achievements upon the management of investment management. The overall return of the investment pool, and the treasury Commingled Pool of Orange County was much greater than the performance that represented the national average funds’ rate of return. Citron’s strong record of accomplishment was the reason why he could be re-elected for seven consecutive elections. Due to keeping great performance in almost 8 years, everybody had confidence in his investing strategies and even the department of supervision of municipal funds did not need him to report at the annual funds review meeting. Since then, nobody queried him and his funds management; Citron’s investing strategy became more risky. Description of Financial Situation before the Exposure The original intention of the founding of the investment funds was to manage the funds of local financial institutions steadily and profitably, but who thought that it would be the largest municipal financial tragedy in the United States. Since the information industry had developed well in the late of 20th century and the great performance of funds managed by Citron had been publicized nationwide, he was regarded as a superstar of managing
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