10/09/2008 GAAS:712:08 FOR IMMEDIATE RELEASE Print Version | Email / Share
Governor Schwarzenegger Sends Letter Updating U.S. Department of Treasury on California’s Current Financial Situation
Governor Arnold Schwarzenegger sent the
following letter updating the U.S. Department of Treasury on California's current
financial situation.
Text of the letter:
October 9, 2008
The Honorable Henry M. Paulson,
Jr.
Secretary of the Treasury
1500 Pennsylvania
Avenue, NW
Washington, DC 20220
Dear Mr. Secretary,
I congratulate you on the passage of the Emergency
Economic Stabilization Act (EESA). As I've said before, bringing stability and
liquidity to the U.S. financial markets is essential
to protecting the life savings, businesses, retirement plans and jobs of
millions of our fellow Americans. This rescue plan is particularly vital in
California,
where we have been especially hard hit by home foreclosures and the economic
downturn.
Last week, I alerted you to the immediate challenges
California and
a number of others states and local governments are experiencing due to the lack
of liquidity in the credit markets. I write to update you on our situation and
inform you of our progress.
Yesterday, California State Treasurer Bill Lockyer
officially began the process of selling the first $4 billion tranche of $7
billion in Revenue Anticipation Notes, our normal short-term cash flow borrowing
instrument. Although it's difficult to assess market conditions with perfect
precision, the passage of EESA and ongoing actions by the Federal Deposit
Insurance Corporation and the Federal Reserve System appear to be improving
liquidity. We are also encouraged by the state of Massachusetts's sale of
$750 million in short-term notes yesterday, and we're hopeful we can
successfully sell these notes.
Although California feels the enormous effects of our
current economic crisis, I am optimistic that these efforts to improve liquidity
are moving the country toward more stable economic footing. I will continue to
update you on our progress. Thank you for your continued vigilance in
addressing these urgent matters.
Sincerely,
Arnold
Schwarzenegger
