County Executive Kevin Kamenetz said Sunday that he and the Baltimore County Council were briefed in 2008 on a with Merrill Lynch.
Kamenetz answered questions about the pension investment Sunday during an interview on WBAL TV.
Kamenetz said Baltimore County, "like many other jurisdictions, were misled" in a 2007 pension investment known as Mainsail II LLC.
The county lost as much as $21 million in the investment. Last week, with members of the Baltimore County Council to discuss a possible lawsuit against Merrill Lynch over the fund that was built on subprime mortgages.
Kamenetz was chairman of the County Council in January 2008 when the council was asked to that would prohibit future investments in such funds.
There are no minutes for the 2008 meeting and notes prepared by the county auditor's office, which works for the County Council, does not reference any losses.
Don Mohler, a county spokesman and chief of staff to Kamenetz, refused to answer questions last week from Patch regarding the 2008 meeting.
Kamenetz, however, did answer the question during his television interview.
"The council was informed," said Kamenetz. "We were aware of the nature of the loss and enacted changes to our bonding portfolio concept so this would not occur again. Now were investigating the opportunity to pursue a cause of action and if we can recover something it would be great."
Kamenetz did not answer questions about existing checks and balances that would have prevented the investment to be made without oversight.
They are being tight lipped since they are probably looking to play the "victim of Wall Street." The real story here is someone in the county signed off on it. This headline could easily read: "County Officials Fail in Fiduciary Responsibilities. Elected Board's Mismanagement Leads to Huge Loss"
This quote is troubling. "Kamenetz said Baltimore County, "like many other jurisdictions, were misled" in a 2007 pension investment known as Mainsail II LLC." Who was misled? The council, the board, Homan, the Avon lady? Who cooked the deal, that is the $21 million dollar question. Then we have this: "There are no minutes for the 2008 meeting and notes prepared by the county auditor's office, which works for the County Council, does not reference any losses." Twenty one mill walks out the door and no one takes - note - of it. And finally this comment: "Don Mohler, a county spokesman and chief of staff to Kamenetz, refused to answer questions last week from Patch regarding the 2008 meeting." When mum is the word, that generally is not a good sign.
Also, what employee or employees made this investment? Was it authorized? Does he or she still work for the County? So many questions.......so few answers.
What's likely is someone in the county made the recommendation to invest in Main Sail II. Main Sail is contrary investing action. They doubled down when the crash happened. Bill Miller at Legg Mason Value Trust made a similar bet with Freddie and Fannie during the crash - somewhere around 30 million shares as it nose dived. I think this is why Brian's story is so dangerous - is it isn't always the action, it is the cover up that gets you. Mainsail was a dog, it happens, that's the risk in investing. Now who and why someone in BaCo brought this dog home is the real question. Said it before, if I was a new council member I'd call the Feds and get out ahead of it before you get tainted. After a couple of closed door sessions you're then a player.
To add to my disgust, why isn't the council taking the front seat on this one. They are as bad as Kamenetz by enabling allowing private meetings. Didn't Kamenetz himself promise complete transparency in his own ethics bill?
The charter is very specific about how this money is to be handled. Were the rules followed in this venture. Who approached who and what was said. It's a little like, I've got this great deal on the Brooklyn Bridge. Again I say $600,000 to $1 million is a lot of money for a broker on a deal like this and knowing the right person is a deal maker.
Mohler and Homan are propping him up, and the citizens are sick to death of it. I heard that Kamenetz appeared at a recent meeting of the Baltimore County Licensed Beverage Associaion and was "booed". A whole lot of people, of all parties and persuasions are not happy with Kamenetz.
To you it may be rhetoric, but to others it may be a valid concern. It doesn't help when those responsible choose to remain silent. You are engaging in the same rhetoric by making an assumption as to the cause of the loss. You may be right, or you may be wrong, as in the same manor each of us individuals also have an opinion.