It amounts to less than one percent of Fremont’s $355 million investment portfolio, but Fremont was left holding a $2 million Lehman Brothers corporate bond. With Lehman now in bankruptcy proceedings, it’s too soon to tell if Fremont will recover the full value of the bond, Finance Director Harriet Commons said.
The bond was rated AAA. Under normal circumstances the city would have sold it before the issuer went into default, but in Lehman’s case, she said, “Everything happened so quickly, that’s how we ended up holding on to it.”
I’ll have a short story about all three Tri-City area cities and the Wall Street woes in tomorrow’s paper.