Recently, at the Missouri Ethics Commission:

C081066 02/07/2011 CLINT ZWEIFEL FOR MISSOURI Kirby McInerney LLP 825 Third Avenue New York NY 10022 2/7/2011 $2,500.00

C031159 02/08/2011 MISSOURIANS FOR KOSTER Kirby McInerney LLP 825 Third Avenue New York NY 10022 2/7/2011 $2,500.00

[emphasis added]

Statewide Democratic incumbents are raising money for 2012. Not that the republicans are going to have an unlimited amount of money or anything.

Maybe everyone got the message.

Who are they?:

At Kirby McInerney LLP, we bring experience, intelligence, creativity, and dedication to bear in defending our clients’ interests against losses in cases of securities, consumer, antitrust, healthcare, corporate governance, and ERISA fraud.

For over 60 years, governmental entities, Taft-Hartley funds, hedge funds, and other aggrieved institutions and individuals have turned to us to ensure they receive industry-leading advice, securities monitoring, trial expertise and recoveries.

We offer our services on a contingency basis, and are paid only if successful in recovering losses in the event of a fraud….

According to OpenSecrets Kirby McInerney or individuals associated with them have given $456,080.00 to candidates between 2001 and 2010 – 97% of that to Democrats and 71% of that to state candidates.

From the 2008 election cycle, via the Missouri Ethics Commission:

C001135 JAY NIXON FOR MISSOURI —   Alice McInerney 510 E. 86th Street, 11B New York, NY 10028 Kirby McInerney/Attorney 10/29/2007 $1,275.00

C001135 JAY NIXON FOR MISSOURI — Daniel Hume 300 East 54th Street New York, NY 10022 Kirby McInerney/Attorney 11/1/2007 $1,275.00

C001135 JAY NIXON FOR MISSOURI — Ira M. Press 665 North Forest Drive Teaneck, NJ 07666 Kirby McInerney/Attorney 10/29/2007 $1,275.00

C001135 JAY NIXON FOR MISSOURI — Kenneth G. Walsh 1418 Roosevelt Ave. Pelham Manor, NY 10803 Kirby McInerney/Attorney 10/29/2007 $1,275.00

C001135 JAY NIXON FOR MISSOURI — Randall L. Berger 830 Third Avenue New York, NY 10022-3903 Kirby McInerney LLP/attorney 5/29/2008 $1,350.00

C001135 JAY NIXON FOR MISSOURI — Mark A. Strauss 245 W. 75th ST. Apt. 4C New York, NY 10023 KIRBY McINERNEY & SQUIRE, LLP/attorney 5/29/2008 $250.00

C001135 JAY NIXON FOR MISSOURI — Christopher S. Studbeaker 104-60 Queens Blvd., Apt.19-K Forest Hills, NY 11375 KIRBY McINERNEY & SQUIRE, LLP/attorney 5/29/2008 $250.00

C031159 MISSOURIANS FOR KOSTER — Kirby McInerney LLP 825 Third Avenue New York, NY 10022 10/09/2008 $5,000.00

C001135 JAY NIXON FOR MISSOURI — Kirby McInerney LLP 830 Third Avenue New York, NY 10022 10/3/2008 $9,000.00

[emphasis added]

There was no record of contributions from Kirby McInerney LLP for 2009 and 2010 at the Missouri Ethics Commission.

It’s nice to see Missouri Democrats have some friends. It ain’t quite the same juice as the Chamber of Commerce, though.

Yep, the 96th General Assembly is now in session.

During the legislative session any member of the General Assembly or any statewide office holder who receives a campaign contribution over $500.00 must report that contribution to the Missouri Ethics Commission within forty-eight hours:

Missouri Revised Statutes

Chapter 130

Campaign Finance Disclosure Law

Section 130.044

Certain contributions to be reported within forty-eight hours of receipt–electronic reporting, when–rulemaking authority.

130.044. 1. All individuals and committees required to file disclosure reports under section 130.041 shall electronically report any contribution by any single contributor which exceeds five thousand dollars to the Missouri ethics commission within forty-eight hours of receiving the contribution.

2. Any individual currently holding office as a state representative, state senator, or any candidate for such office or such individual’s campaign committee shall electronically report any contribution exceeding five hundred dollars made by any contributor to his or her campaign committee during the regular legislative session of the general assembly, within forty-eight hours of receiving the contribution.

3. Any individual currently holding office as the governor, lieutenant governor, treasurer, attorney general, secretary of state or auditor or any candidate for such office or such person’s campaign committee shall electronically report any contribution exceeding five hundred dollars made by any contributor to his or her campaign committee during the regular legislative session or any time when legislation from the regular legislative session awaits gubernatorial action, within forty-eight hours of receiving the contribution.

4. Reports required under this section shall contain the same content required under section 130.041 and shall be filed in accordance with the standards established by the commission for electronic filing and other rules the commission may deem necessary to promulgate for the effective administration of this section.

5. Any rule or portion of a rule, as that term is defined in section 536.010, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536 to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2008, shall be invalid and void.

(L. 2008 S.B. 1038, A.L. 2010 S.B. 844)

[emphasis added]

This week:

C091145 01/05/2011 FRIENDS OF PETER KINDER Menlo Smith 15009 Manchester Rd #284 Ballwin MO 63011 1/3/2011 $15,000.00

C051108 01/07/2011 CITIZENS FOR RIDGEWAY FEAPAC of Missouri 11880 College Blvd Ste 120 Overland Park KS 66210 1/7/2011 $1,000.00

C051108 01/07/2011 CITIZENS FOR RIDGEWAY BNSF Railway Company 2500 Lou Menk Dr, AOB-3 Fort Worth TX 76131 1/7/2011 $1,000.00

C081066 01/07/2011 CLINT ZWEIFEL FOR MISSOURI Michael Woodling 701 Military St Louis MO 63125 1/5/2011 $1,000.00

[emphasis added]

It must be nice to be the Lieutenant Governor. Laissez les bons temps rouler!

And Luann Ridgeway (r)? What’s she running for?:

CANDIDATE   Date Established:4/26/2005

COMMITTEE: MECID:C051108

CITIZENS FOR RIDGEWAY

CANDIDATE:   LUANN RIDGEWAY

OFFICE SOUGHT: STATEWIDE OFFICE

Date of Election:8/5/2014

Political Party:REPUBLICAN

Ah, term limits.

I’m betting it’s Attorney General. Or Treasurer. Or Secretary of State. Or Lieutenant Governor.

Missouri State Treasurer Clint Zweifel (D) at Boys State on the campus of the University of Central Missouri on Monday evening.

On Monday evening Missouri State Treasurer Clint Zweifel addressed Boys State in Hendricks Hall on the campus of the University of Central Missouri in Warrensburg:

State Treasurer Clint Zweifel  (D): ….And I really want to talk to you about the experience of serving. Because one of the things I am most passionate about, for every party and for everyone in this, in, who’s young, is that public service matters. And I want to let you know what a rewarding experience it is to be able to serve. And how good people, and good young people are going to make the difference. And that’s going to be the critical difference upon where Missouri is in the next few decades and where the United States is….

[….]

….I think a lot of us we, we tend to think, and I might have even thought at that point, that leadership fits into this nice box. And it looks the same and feels the same for everybody. But, it really doesn’t. It’s not something that you can simply put into a formula. That we think about, when I think about the effectiveness of those members that I looked to as leaders, you know, I thought of people that were strategic and really focused on a, and knowing what they wanted to accomplish. And able to have a laser light focus on that. You know I think of, I think of individuals that I looked to were people that were intellectually curious. Listen, we, we all have our political persuasions and we all have family and party identification, but the best leaders in the House were people that were intellectually curious and were open minded toward different ideas and different approaches to solve problems. That they were able to move away from ideology and actually get down to solutions.

We talked about individuals that I think had compassion. You know, it’s the easiest thing that we can do when we identify a problem, is to blame. But when we begin to actually have compassion and understanding it helps us get to a solution for those problems. And understanding that how you treat others, with respect and basic kindness, and that you uphold the same ethical values that, that you think you should carry with you in life are important and they really matter.

And finally, the people that were most successful in my time in the House were people that had the confidence to be themselves.  So these leaders were quiet sometimes, sometimes they weren’t so quiet, they were really talkative. Sometimes it took four years for them to really sprout up and become a leader. But, but the key is that all of those individuals that, that I talked about, while they were really different in personality and their sense of style and how they approached the job, they had those factors that they really stuck to….

[….]

….We made an important change to our low interest loan program to make sure that more family farms and more small businesses qualify. We’ve lent about three hundred million dollars in low interest loans throughout the state since I took office. It’s affected thirty-three hundred jobs, it’s affected twelve hundred farms. Folks, we’re reinvesting in the state in a way that hasn’t been done before by previous State Treasurers. We’re going to be able to put a billion dollars back into the State of Missouri to works for farms and small businesses over the next year and a half. [applause]  And I think one of the things that is most, most rewarding about this loan program – these are things that you can see and feel and touch across the state. These are loans for, for farmers that we see throughout the state, everywhere in the state. These are loans that we see for hardware stores, small businesses. These are loans that we have for carpet cleaning companies. Folks, these are loans for the types of businesses that ultimately are gonna drive seventy-five percent of all job growth during the recovery. This is the time now, during the challenging time, to invest in those businesses and do the right thing. Those are the investments that we need to be making. [applause]….

[….]

….When you think about the large changes that our state has faced and large changes that our country’s faced, those huge social changes that happen.  Guys, they don’t happen in one night. They don’t happen because politicians pass legislation. They don’t happen because somebody gives a speech. These are a series of small investments that really are the agents of change. So when you think about the investment that you’re making by being here right now, when you think about the investments that you’re making by being engaged and by being active and by participating in school activities – these things add up. So, that same approach I want to encourage you to keep taking. But it’s also the philosophy on how we’re gonna grow our state, is that ultimately we have to make smart and small consistent investments in the people of this state. And when you think about where you want Missouri to be in five years and ten years and fifteen or twenty years, it’s gonna be the result of people who were willing to stand up to make the investments we needed and who saw that vision and then said we’re not gonna get there overnight, but we’re gonna make these investments to make Missouri a better place.

Thank you. It is an honor to be here. [applause]

Last night I attended a fundraiser at the home of Jim and Kathy Jackson in Warrensburg for Courtney Cole, the Democratic Party candidate in the 121st Legislative District. State Treasurer Clint Zweifel (D) attended and spoke on Courtney Cole’s behalf.

Missouri State Treasurer Clint Zweifel (D) (left), Lyle Farrand (center) and Courtney Cole (D) (right).

State Treasurer Cllint Zweifel (D):….Folk, folks, I gotta tell you, I am, I am so excited to be here for Courtney tonight….To see everybody out here with smiles on their faces, excited as I am about Courtney’s race that, that she’s going through right now.  And the opportunity to elect somebody of her caliber for this district…

…You know, there is reason to be optimistic, folks. Things can happen in Jefferson City that are positive. And, you know, I’m fortunate enough to tell you, first of all, a big thank you for giving me a chance to serve you as your State Treasurer. I was in the Missouri House for six years, got the opportunity to serve with Jim [Siegfried] for two of those years at the end. And you try to seep in a little bit of knowledge from those folks that have experience and Jim was an honorable public servant. We need more of those in the House.

And, you know, I’ll tell you what, during our time as State Treasurer, we campaigned on the fact that we were gonna have, committed to excellence in all of our core functions. That we were gonna make smart strategic investments to help grow our state and grow our economy. That we were gonna have a transparent government. You know, one of the things that we have to do as public servants is build trust and accountability so that voters have the confidence to believe in the work that we’re doing so that we can govern, so that we can ultimately make some tough decisions along the way….

….I also manage the college savings plan for the state, Missouri MOST, during one of the toughest economies we’ve had in decades we have more Missourians signed up for the MOST plan than ever before saving for college. And we’ve specifically reached out to middle income families, helping then understand that you can save as little as twenty-five dollars a month, fifty dollars a month and actually make an impact over eighteen years.

And another exciting thing that we’ve really worked hard on is our small business loan program and farm loan program. When I took office we had a low interest loan program for farms and for small businesses. The program was, frankly, operating a little slowly, wasn’t really relevant in the marketplace, wasn’t a lot of institutions using it. Since I came into office we’ve been able to place three hundred million dollars in farm and small business loans. That’s impacted one thousand five hundred farms in the state…that’s impacted three thousand jobs. And, and these are loans that, that might be to a high tech company that’s developing new technology to cure diabetes. And these are loans to a local hardware store down the street or a farmer that, that needs to borrow for cash flow purposes. Those are the types of things that we’ve been doing in the legislature, working with the legislature to get things done for the folks that we represent in Jefferson City.  And you know, we’ve done that, we passed three pieces of legislation since I became State Treasurer….

….There is hope that when you’re involved in this process that you actually make government work better. And, and that’s why we’re here tonight. When you think about, when you think about this process and you think about candidates, and let’s talk a little bit about what Jim [Jackson] has done for us…What he’s done for us and they both have done for us running for state representative [in 2002 and 2008]. Folks, that is a tremendous leap of faith that it takes. It’s a leap of faith on the part of those supported Jim and it’s a leap of faith on, on his part, to be able to stand up and have the guts to put yourself out there, day after day, and let people know at a basic emotional level that you believe that you’re the best person for the job and that you want to be able to serve them. I mean, that is a tremendous thing that we should be able to thank Jim for and thank Kathy for, for what they’ve done. [applause]

You know, I tell you what, and when we think about the job that we do as State Treasurer, you know, you think about investments, right? And whether it was making that investment in Jim or making the investment that we’re making in Courtney tonight, that’s what this is about. Is the idea that we all believe that if we’re involved in this process, if we’re involved in a campaign and election, if we help get people elected and if those individuals are like Courtney, who’s a community leader, an educator, and somebody, that when we look at Courtney and her family, we say that we want them to be our neighbor. And that’s the type of people and the type of leaders that we need in Jefferson City. And I am so excited to know that Courtney is working hard right now, but you know what, folks, she needs every bit of your support….And it matters more than you can imagine….

….When we think about where we want Missouri to be, not just in a few months when we elect Courtney, but let’s think about where we want Missouri in ten years. And you just think about what in your heart and mine brought you here tonight. Folks, that’s why we’re involved in this process. And that’s why we’re going to elect Courtney state representative. Courtney, we’re glad to have you.

Courtney Cole (D): Thank you. [applause]….Thank so much for the kind words. Thank you so much for coming this way. It really means a lot to me that you can come here to Johnson County and meet my neighbors and my supporters. And thank you so much….

….You know, Jim [Jackson] ran this race last time. It means the world to me to have their support. This time around, they gave it to me very early on and were very supportive of me. And I can’t tell them how much it really truly means….

….Thank you to all of you for coming out tonight…you guys are energized, you’re out here and it’s wonderful to see all of your faces.

….Earlier today I was listening to Senator [Victor] Callahan speak. And he said something that reminded me of why I’m running this race. He said that he was really proud to be a Democrat. And the reason that he was proud to be a Democrat was because we are so open to diversity and to different ideas and different approaches. And how wonderful that is to hear him say that and for me to think, yes, that’s exactly why I’m doing this.

You know, because right now in Jefferson City that’s really not something that is there. You know, we have a lot of party politics that are going on and people are butting heads and we’re not getting things done….

….Not too long ago, I tried to send it out to as many of you as I could, asking the Governor to seriously consider having a special session to pass a jobs bill. Because as I’m going out and I’m knocking on doors right here in Johnson County, what the folks are telling me that’s important to them is that they have a job. And I spoke with a gentleman the other night and he said, you know I’ve always had a job. And he said, I took it for granted because then the day that I was laid off, you know, I realized, oh my gosh, I’m in trouble. You know I have a family that I need to support. What am I going to do? And so he’s looking at me and saying, help me. Please help me. Because that help is not there right now.

They spent the entire session, well, a good chunk of the session talking about non-binding resolutions to go up to Congress. And then the spent
literally an hour and a half talking about a jobs bill. With a rate of nine point four to nine point eight of unemployment in our state right now, to me it’s just irresponsible. And so I feel very passionately about working to bring jobs not only to the state, but to Johnson County, too….And so I’m really going to work hard to make that happen.

As a teacher, of course, I’m going to work very hard, too, to make sure that we are not just cutting our budgets, but that we are coming up with solutions. Because we’re not going to be able to cut our way out of this. You know we really have to take a hard look at where we’re at and come up with some solutions….

….[This summer] I have spent literally every hour throughout the day working on the campaign and I will continue to do so. And I thrive off of this, you know, I want this, I want this for all of us. It’s so important to me, every time that I go and knock on someone’s door and I shake their hand and, and hear them say, you know, I’m gonna support you, it just puts it right back in. The, the feeling of I gotta do this for them. You know, I’ve gotta work even harder for them. And, and so that’s what I’m doing.  And thank you for joining me.  We can win this, you guys. We can truly win this….

….We are staying positive and we have, we have great support here in Johnson County and it shows. And people throughout the state are seeing that. So, we can have a win right here.  We only need eight more seats to have the majority in our House so that we’re able to get a lot of great things accomplished. But I will always be a voice here for Johnson County. So thank you so much for supporting me. [applause]

Early last August I wrote: “With wingnut thugs planning to disrupt every Democratic town hall this August, writing about ethics reform at the Missouri Housing Development Commission is … tame. That’s the problem with actual good governance: it seems so humdrum that it’s easy to overlook.” And then I wrote about Treasurer Clint Zweifel, who is …don’t yawn when I say it … doing a great job. The latest evidence of that, though, is even exciting. Here’s the press release:

State Treasurer Clint Zweifel announced today his office had returned $1.6 million in Unclaimed Property to a person in the St. Louis region.  The payout is the largest single account returned to an individual in Missouri history.  As always, when done directly with Treasurer Zweifel’s office, the Unclaimed Property return was made free of charge.

“Our average of $360 per account means a lot to Missourians.  This return is tremendous, and I am proud my office was able to locate this individual and return the property.  It was the largest single payout from one account to an individual ever, and as always, it was returned free of charge,” Treasurer Zweifel said.  “I cannot promise every Missourian will get $1.6 million, but I can say that one in 10 Missourians has Unclaimed Property.  It is always free when you go straight to ShowMeMoney.com.”

There remain 30 claims worth more than $100,000 each to be returned from Unclaimed Property.  Of those 30 claims, the geographic breakdown is: 11 in St. Louis County; nine in Jackson County; four in St. Louis City; two in Boone County; one each in Pike, Camden, Cole and Franklin counties; and one with county unknown.

“I have 14 staff members dedicated to returning Missourians their money, and we go through records upon records to match addresses, chains of title and much more,” Treasurer Zweifel said.  “With 30 claims worth more than $100,000 each and $600 million available, I encourage all Missourians to check to see if they have Unclaimed Property.”

In addition to the record payout, half way through the 2010 fiscal year Treasurer Zweifel’s office was on pace to break the previous record for Unclaimed Property accounts returned by more than 15 percent.  A total of 45,809 accounts had been returned since July 1 totaling more than $16 million in returns.  Wait times for returns were also down to 28 days, which is a 15 day reduction versus Dec. 31, 2008.

Missourians may search for Unclaimed Property at ShowMeMoney.com.

About Treasurer Zweifel’s Unclaimed Property

State law requires financial institutions, insurance companies, public agencies and other business entities to turn over assets to Treasurer Zweifel’s office that belong to a customer, client, employee or other owner if there have been no documented transactions or contact with the owner for five or more years.  Most Unclaimed Property consists of cash from bank accounts, stocks, bonds and contents of safe deposit boxes that have been abandoned.  It also can include uncollected insurance policy proceeds, government refunds, utility deposits and wages from past jobs.  Treasurer Zweifel’s office does not handle real property such as land, houses, cars and boats.  There is $600 million in Unclaimed Property maintained by Treasurer Zweifel.  Treasurer Zweifel’s office never charges for the return of Unclaimed Property.

Milind Sant is the CEO of LipoSpectrum, a startup company that holds the exclusive license to a lipid analysis technology developed at Washington University. He could have moved to the East or West Coast with his new startup. The fact that he’s staying in Missouri has a lot to do with the new Linked Deposit program, Treasurer Clint Zweifel’s brainchild.

I reported on it in July:

The low interest loans are called Linked Deposit Loans. Here’s how they work. If a borrower wants a loan of a hundred dollars to start, say, a t-shirt shop, she goes to the bank, which quotes her a five percent rate on the loan. But then the bank goes to the Treasurer’s office and says, “How about lending our bank $100 at two percent so that we can give this entrepreneur the loan at two percent instead of five?” If the Treasurer’s office agrees, the bank passes that savings along to the borrower: a two percent loan.

The new program, which Zweifel shepherded through the legislature last spring with a Republican sponsor in each chamber and with not a single dissenting vote, was officially kicked off at a press conference with Sant on Thursday. Zweifel (pictured above, listening to Sant explain the basics of the lipid analysis machinery) wanted to use LipoSpectrum as a poster child for the program because it exemplifies what we can do for Missouri by combining technological research with private enterprise and government help. Sant saved somewhere between two and three percent on the interest of his loan, which would save him 30 percent of what he eventually pays in interest, according to Zweifel.

Jo Mannies of The Beacon asked Sant if he would have stayed in Missouri had it not been for the advantage this Linked Deposit loan afforded him. He responded:

“Well, you know, for the last four  years I’ve watched technologies being developed at Washington University and leaving the state of Missouri. And I would love to have many of those technologies stay right here. So when I came across, as this technology matured, I ideally wanted to keep it here in Missouri. So I’m happy that I could stay here and do this. Alternatively, there’s capital outside Missouri who would have been interested then–which I would have pursued. And the concept is so … it’s amenable to having it in the middle of the country with samples being sent from all over. It’s easier to send samples from the East or West Coast to Missouri than to send either from East to West Coast. So there’s an advantage of a centralized location.”

Short version: I wanted to stay in Missouri, and the Linked Deposit program made that practical. I could have gotten funding in other states, but this program helped me stay here.

Sant, then, is creating jobs in Missouri–Zweifel pointed out that 75 percent of the job creation in a recession comes from small businesses–and buffing up St. Louis’ reputation as a home to new technologies. Zweifel’s program will help not just that sort of business but P.R. firms and restaurants, green businesses and businesses that want to make their premises greener, even small local governments that need loans to improve their infrastructure. And all of these loans are completely safe for the state. The banks are taking the risk, while the state is encouraging entrepreneurs. That’s not just win/win; it’s win/win/win/win–for the businessman, the state, the bank, and the new employees.

With wingnut thugs planning to disrupt every Democratic town hall this August, writing about ethics reform at the Missouri Housing Development Commission is … tame. That’s the problem with actual good governance: it seems so humdrum that it’s easy to overlook.

Fortunately for Missourians, though, Clint Zweifel, their new treasurer and the chair of the MHDC, (pictured at right being sworn in last January) gets excited about ethics reform. The Housing Commission hands out tax credits to developers for low income housing, and the opportunities for commissioners to abuse their position were rife. And inexcusable. It wasn’t even illegal for them to have personal or financial interests with people coming before the MHDC.

Treasurer Zweifel pushed for quick ethics reform and got it passed last week. Here are the changes:

• Commissioners must disclose any business relationships they have with applicants and recuse themselves.
• The revolving door between the MHDC and developers just stopped turning. Companies that hire former commissioners or employees of the commission now face a two year waiting period before they can come before the commission.
• All developers will disclose all of their business relationships. So, for example, if a consultant who wrote the application for a developer has business ties with one of the commissioners, that conflict of interest will come to light.

The public yawns at news of this reform. It’ll only prevent a few undeserved millions from finding their way into the accounts of corrupt developers. Not sexy. But worth doing.

And oddly enough, Lt. Gov. Peter Kinder, who also sits on the commission, tried to sandbag it last week. Having had two years (the reform moved at glacial speed under Steelman) to acquaint himself with its provisions–and after all, how busy is the Lieutenant Governor?–he wanted to delay the vote because, he said, he’d been traveling the previous two weeks and wasn’t familiar enough with the provisions of the reform. The other commissioners weren’t having his excuses, and except for Kinder, the vote to pass reform was unanimous.

I don’t know whether reform interfered with the plans of one of Kinder’s friends; whether–as a Republican–he just had to be an obstructionist; or whether he was actually too lazy to prepare himself for the vote.

Whatever. Zweifel is on the job. And so are the other commissioners. Thank you.

(Photo of Kinder courtesy of Wikimedia Commons)

Photo: Office of the Missouri State Treasurer

FOR IMMEDIATE RELEASE

Wednesday, February 11, 2009…

…Zweifel Launches INVEST IN MISSOURI

Initiative to reinvest $1 billion in Missouri

JEFFERSON CITY – State Treasurer Clint Zweifel introduced INVEST IN MISSOURI today, his statewide initiative to create and retain jobs and to reinvest nearly $1 billion in Missouri communities.

INVEST IN MISSOURI, which requires legislative action, would increase eligibility in the Missouri Linked Deposit Program, as well as increase the amount of State funds invested in community banks throughout Missouri. The legislative action would result in an estimated $1 billion being reinvested statewide….

“I am looking forward to talking about INVEST IN MISSOURI with all legislative leaders, so that we can start putting investments back into Missouri as soon as possible,” Treasurer Zweifel said. “This is an opportunity to come together to do what is best for the citizens, and to move job creation and community investment forward in Missouri,” Treasurer Zweifel said.

The first part of INVEST IN MISSOURI calls for increasing use of the Missouri Linked Deposit Program, which is administered by the State Treasurer’s Office. The Linked Deposit Program is designed to place State funds with community banks at below-market rates so the community bank can issue loans to borrowers at a reduced rate. Loan savings is usually 2 to 3 percent to the borrower. The program, which has a statutory $720 million cap on it, is about 30-percent utilized currently. To overcome the hurdles inhibiting the Linked Deposit Program’s effectiveness, Treasurer Zweifel called for streamlining the application process, reducing bureaucratic obstacles for businesses and increasing program eligibility to expand job growth in agriculture, small business, public works and alternative energy.

“INVEST IN MISSOURI allows us to make the Linked Deposit Program dynamic so that we are moving Missouri’s economy forward by investing in the new economy,” Treasurer Zweifel said.

The second part of the INVEST IN MISSOURI initiative focuses on the placement of State funds in community banks, which is a separate statutory investment from the Missouri Linked Deposit Program. Treasurer Zweifel said INVEST IN MISSOURI requires legislative action because current State law includes a disincentive actually discouraging the State from placing deposits in Missouri community banks.

“Missouri is one of two states in the nation, and the State Government is the only government entity in Missouri, which caps the interest rate taxpayers receive when their funds are invested in community banks,” Treasurer Zweifel said. “By removing the cap, and combining with the Missouri Linked Deposit Program, our office can reinvest $1 billion in Missouri communities.”

The legislative change to the interest-rate cap would also result in an additional $10 million coming back to Missouri taxpayers because of the increased interest rate returns.

“Through INVEST IN MISSOURI, we can ensure that taxpayers are investing in Missouri’s future success and are receiving a great return on their money,” Treasurer Zweifel said.

[emphasis added]

This is the type of pragmatic solution we should expect from all of our public servants. Practical money management from the Missouri State Treasurer is a good thing. What’s not to like? In the time lag between income and outgo state funds can be invested in very safe places.

Given the relatively large amount of state money available this can have a very positive economic impact on the state in two ways. It places a significant amount of money safely into a place in the economy that can utilize the resource to help alleviate the current downturn in available money for reinvestment in the economy and it can generate increased interest return to the state, adding a not insignificant amount of funds to state income.

With prudent money management and the exercise of due diligence on the part of the State Treasurer’s office this is a smart thing to do. As I said before, what’s not to like?

The trick will be in getting the Missouri General Assembly to act in a timely manner.

Photo: Office of the Missouri State Treasurer

MOSERS, the Missouri State Employees’ Retirement System, lost a chunk of change in the Bernie Madoff Ponzi scheme. New Missouri State Treasurer Clint Zweifel, who serves as an ex-officio member of the board of MOSERS by virtue of his office, issued the following press release:

OFFICE OF THE MISSOURI STATE TREASURER

Clint Zweifel, Treasurer

MISSOURI STATE CAPITOL, P.O. BOX 210, JEFFERSON CITY, MO 65102

For immediate release:…

Zweifel Learns Of Madoff Connection to MOSERS

Bernie Madoff scam costs state retirement fund an estimated $3.5 million

Jefferson City, Mo – Missouri State Treasurer Clint Zweifel attended his first official meeting of the MOSERS Board, the state retirement agency, on Thursday and learned that money MOSERS placed with the asset management firm, Silver Creek Capital Management, fed money to Bernie Madoff.  This investment resulted in a $3.5 million loss to the state employee retirement fund.  Madoff, a financier, is allegedly behind a $50 billion Ponzi scheme.  “There has never been a more important time to protect the retirement of hard working Missourians and the investments of taxpayers” said Zweifel.  Treasurer Zweifel urges the Board and the staff of MOSERS to implement the following actions to protect investors and taxpayers

·         The relationship between MOSERS and Silver Creek should be thoroughly examined and all courses of action should be considered.

·         Development of policies that promote increased openness and transparency of MOSERS’ investments by defining what issues are appropriate to discuss in open session versus executive session.

·         Improved and more detailed disclosures so MOSERS board members know and understand how specific investments are performing.

·         Increased due diligence on asset managers by MOSERS to provide for increased accountability.  This is particularly important considering the “fund-of-fund” investment method sometimes used by MOSERS.

·         We should consider pursuing legal action for plan participants who have been harmed by the decision to invest with a firm that invested with Bernie Madoff.

·         There needs to be a comprehensive review of all MOSERS investments to ensure there isn’t additional Madoff exposure.

“The Board and the MOSERS staff should immediately take steps to remedy the situation at MOSERS” said Zweifel, “It is unfortunate that anyone was affected by Madoff.  It is crucial we take immediate action to see that this does not happen again.”

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The consequences of a complacent Securities and Exchange Commission and political leadership which disdains proper regulation has far reaching consequences. It’s not just about a bunch of (formerly) wealthy individuals in New York City who misplaced their trust in someone.

DECEMBER 18, 2008

Madoff Misled SEC in ’06, Got Off

By GREGORY ZUCKERMAN and KARA SCANNELL

Securities and Exchange Commission investigators discovered in 2006 that Bernard Madoff had misled the agency about how he managed customer money, according to documents, yet the SEC missed an opportunity to uncover an alleged Ponzi scheme.

The documents indicate the agency had Mr. Madoff in its sights amid multiple violations that, if pursued, could have blown open his alleged multibillion-dollar scam. Instead, his firm registered as an investment adviser, at the agency’s request, and the public got no word of the violations….

State Treasurer Clint Zweifel is evidently intent on exercising his fiduciary responsibility – that’s quite a contrast with dubya’s administration.

As far as the races in Missouri, Terrence Jones echoed this blog’s disappointment with the Dem showing in state legislative contests (only three seats gained in the House and three seats lost in the Senate). Then he commented on the statewide candidates who won (including his answer to the question in the title of this posting):

Asked why Sam Page lost, Jones had this analysis:

My next posting on Jones’ speech to the West County Dems will feature two brief clips: one on redistricting, the other on what we can do to improve our performance in state legislative races in 2010.